1.2 Recognizing stakeholders and their information needs

• 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