Question: Which Stakeholder Is Most Interested In Profit?

What are stakeholders interested in?

A stakeholder is anyone with an interest in a business.

Stakeholders are individuals, groups or organisations that are affected by the activity of the business.

They include: Owners who are interested in how much profit the business makes.

Managers who are concerned about their salary..

Which stakeholder would be most interested in profitability and share performance?

Shareholders are interested in financial statement analysis to know the profitability of the organization. Profitability shows the growth potentiality of an organization and safety of investment of shareholders.

Which is the evidence of business transaction?

Any written evidence in support of a business transaction is called Voucher. Vouchers are the primary evidence of business transactions having taken place.

Who are the key stakeholders?

Stakeholders can affect or be affected by the organization’s actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.

What are the four types of stakeholders?

This article covers four types of stakeholders: users, governance, influencers and providers, which all together go by the acronym UPIG.

How do you identify stakeholders?

Identify Your Stakeholders Start by brainstorming who your stakeholders are. As part of this, think of all the people who are affected by your work, who have influence or power over it, or have an interest in its successful or unsuccessful conclusion.

What is the role of a stakeholder?

A stakeholder is a person who has an interest in the company, IT service or its projects. They can be the employees of the company, suppliers, vendors or any partner. Stakeholders can also be an investor in the company and their actions determine the outcome of the company. …

Which stakeholder group would be most interested in?

Introduction to AccountingWhich stakeholder group…would be most interested in(Lenders)(d) whether the firm has a long-term future(Suppliers and Creditors)(e) profitability and share performance(Customers)(f) the ability of the firm to carry on providing a service or producing a product3 more rows

Who are the most important stakeholders in a business?

Shareholders/owners are the most important stakeholders as they control the business. If they are unhappy than they can sack its directors or managers, or even sell the business to someone else.

Who is more important shareholders or stakeholders?

A shareholder owns part of a public company through shares of stock, while a stakeholder has an interest in the performance of a company for reasons other than stock performance or appreciation. These reasons often mean that the stakeholder has a greater need for the company to succeed over a longer term.

What are the processes of accounting?

The accounting cycle, also commonly referred to as accounting process, is a series of procedures in the collection, processing, and communication of financial information. As defined in earlier lessons, accounting involves recording, classifying, summarizing, and interpreting financial information.

Who are the top three most important stakeholders in a business?

Who are a company’s most important stakeholders?Customers. Peter Drucker defined the purpose of a company as this; to create customers. … Employees. … Shareholders. … Suppliers, distributors and other business partners. … The local community. … National Government and regulatory authorities.

Can a customer be a stakeholder?

A stakeholder is a party that has an interest in a company and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers.

Which user group is likely to be most interested in the liquidity of a business?

Trade creditors or suppliers Like lenders, trade creditors or suppliers are interested in the company’s ability to pay obligations when they become due. They are nonetheless especially interested in the company’s liquidity – its ability to pay short-term obligations.

Who are the stakeholders of financial statement?

The stakeholders of financial reports include the organization’s management, employees, stockholders, creditors, customers, vendors, governmental authorities, and labor unions. The ethical foundation of financial reporting is derived from the need to hold managers accountable for achieving the goals of investors.