Financial Information for Stakeholders

Questions and Answers

A customer who purchases products without regard to the company's practices.

A shareholder who only focuses on profit.

Anyone who has a responsibility towards an organization and is interested in its success. (correct)

A business owner who solely makes decisions for personal gain.

Income, cash flow, and net worth. (correct)

Employee satisfaction and management structure.

Brand recognition and advertising expenditures.

Market trends and competitor analysis.

The market share of the business.

The management strategies employed by the business.

The profit and loss over a specified period. (correct)

The total assets owned by the business.

<p>Assets = Liabilities + Equity</p> Signup and view all the answers

<p>Wholesale and retail stores.</p> Signup and view all the answers

Study Notes

Stakeholders include individuals or groups with an interest in a business, such as owners, employees, and customers.
Stakeholders look for financial information to assess a business's performance and viability.

Important metrics include sales numbers, total profit, income, cash flow, and net worth.
Annual reports and past financial statements are primary sources of financial information for stakeholders.

Various sectors, especially wholesale, retail, restaurants, and accommodations, experienced significant financial impacts due to the pandemic.

The income statement provides insights into a company's revenue, expenses, and profits.
To calculate gross profit, subtract cost of goods sold (COGS) from total sales. For net profit, subtract total expenses from gross profit.

Distinguishes assets (resources owned), liabilities (obligations owed), and total equity (owner's interest in the business).
The accounting equation: Assets = Liabilities + Equity, illustrating the relationship between these components.