1.2 Recognizing stakeholders and their information needs

Cards (37)

  • Shareholders are primarily interested in a business's financial performance
  • Shareholders need information about financial performance and dividend payouts
  • Why is it important for a business to understand the information needs of stakeholders?
    To operate effectively
  • Order the stakeholder groups based on their key information needs, starting with financial performance:
    1️⃣ Shareholders: Financial performance
    2️⃣ Management: Operational results
    3️⃣ Employees: Job security
    4️⃣ Customers: Product quality
    5️⃣ Suppliers: Order volumes
    6️⃣ Government: Tax compliance
  • What key information does management need about the business?
    Profitability
  • How do employees use accounting information?
    Job security
  • Stakeholders can have either financial or non-financial interests in a business.

    True
  • What key information needs does management have in a business?
    Operational results, profitability, efficiency, market analysis
  • Accounting information is crucial for meeting the diverse information needs of stakeholders
  • What do customers and suppliers use accounting data to evaluate?
    Financial stability and ethics
  • Understanding stakeholder information needs is optional for a business's success.
    False
  • The key stakeholder groups in a business include shareholders, management, employees, customers, suppliers, and the government
  • Shareholders require information on financial performance, dividend payouts, and investment strategy
  • Understanding stakeholder information needs is essential for achieving business objectives
    True
  • Match the stakeholder type with their key information needs:
    Shareholders ↔️ Financial performance
    Management ↔️ Operational results
    Employees ↔️ Job security
    Customers ↔️ Product quality
    Suppliers ↔️ Order volumes
    Government ↔️ Tax compliance
  • Customers and suppliers use accounting data to evaluate the company's financial stability and ethical practices
  • What is the primary difference between internal and external stakeholders?
    Involvement in daily operations
  • Businesses must balance ethical considerations against potential conflicts of interest
  • What are stakeholders in business?
    Individuals or groups with interest
  • Employees need information about job security and career development.
    True
  • What key information does the government require from a business?
    Tax compliance
  • Match the stakeholder type with their key information needs:
    Shareholders ↔️ Financial performance
    Management ↔️ Operational results
    Employees ↔️ Job security
    Customers ↔️ Product quality
    Suppliers ↔️ Order volumes
  • Stakeholders are individuals or groups that have an interest in a business, whether financial or otherwise
  • Shareholders are primarily interested in a company's dividend payouts.
    True
  • Customers are concerned with product quality, pricing, and ethical practices
  • What is crucial for a business to operate effectively and meet its objectives?
    Understanding stakeholder information needs
  • Shareholders are primarily interested in financial performance, dividend payouts, and investment strategy
  • What key information needs do employees have in a business?
    Job security, salary, benefits, career development
  • Shareholders use financial statements to assess the company's profitability and investment strategies.
    True
  • The government uses accounting information to ensure tax compliance and monitor the business's economic impact
  • What are the key stakeholder groups in a business?
    Shareholders, management, employees, customers, suppliers, government
  • What is crucial for a business to operate effectively and meet its objectives?
    Understanding stakeholder information needs
  • What information do customers primarily need from a business?
    Product quality and pricing
  • Shareholders require information on financial performance, dividend payouts, and investment strategy
  • How do shareholders use accounting information?
    Assess profitability and investments
  • Match the stakeholder type with their key information needs:
    Internal Stakeholders ↔️ Employees: Job security
    External Stakeholders ↔️ Shareholders: Investment strategy
  • Businesses must ensure information provided to stakeholders is transparent and accurate.

    True