Many stakeholders are interested in the financial information of a business. Five examples of stakeholders that would be interested include:
- Potential shareholders
- They will want to decide whether or not the business looks profitable in the future and then make a decision as to whether or not to invest.
- Managers will want to use financial information to measure success and progress, and to set financial targets/objectives for the future.
- They will want to use the information to assess whether or not the business has sufficient resources (cash) to pay for supplies. Will the business have cash fow problems and thus not be able to pay for supplies?
- Bank managers
- They will use the financial information to assess whether the business is likely to be able to pay back any borrowings that it may be asking for, and whether it has sufficient assets to hold as security against…
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