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7 Cards in this Set
- Front
- Back
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Owners/Investors
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They require information about the risk involved and their return from their investment in a business. Financial statements enable them to determine whether they should buy, hold or sell their investment in a business.
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Employees
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They are concerned about the financial stability and the profitability of a business. Financial statements help them assess the business's ability to provide remuneration, retirement benefits, employment opportunities and stability.
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Lenders
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They are interested in seeing whether their loans and interest owing wil be paid when these fall due, and need to asses the security over loan applications.
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Suppliers
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Like lenders, they are interested in seeing if amounts that the business owes them will be paid when due. They also use financial statements in order to help them make decisions about credit limits and terms of credit.
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Customers
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They are interested in the continuance of a business, especially if they feel the goods or service provided by that business is of importance to them.
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Goverment
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The government is interested in resource use, therefore the activities of businesses. It also requires information for taxation purposes, for regulation and to determine national income and other statistics.
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Public
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The general public may require information on the contribution a business makes to the local economy. Details of interest include: the number of people the business employs, and its patronage of local suppliers. Financial statements provide information to the public on the prosperity of a business and on its range of activities.
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