Chapter 1.2: Stakeholders

Which stakeholder will make use of business information to decide whether to continue working for the business?

• Owner

• Lender

• Government

• Employee

Which stakeholder will make use of business information to decide whether to sell to the business on credit?

• Lender

• Customer

• Supplier

• Competitor

Which stakeholder will make use of business information to decide whether to buy from the business, depending on the ability of the business to provide good after-sales service?

• Customer

• Supplier

• Lender

• Manager

Which decision would be made by a lender of a business?

• Decide whether the business complies with the tax regulations and the amount of tax to collect from the business

• Decide whether to continue to invest in the business

• Decide whether to sell to the business on credit

• Decide whether to grant loans to a business

The manager is a stakeholder of the business. He works for the business and devises strategic plans to run the business efficiently. He considers whether to....

• 
  invest in the business or sell the business

• find ways to improve the performance of the business

• grant loan to the business

• sell to the business on credit

A trading business sells __________ while a service business provides services.

Stakeholders are groups of people who will make use of information about the business to make decisions. Which of the following are stakeholders?

• Employees

• Government

• Bank

• Supplier

Suggest a possible decision suppliers might make by using a business’ accounting information.

• whether to sell to the business on debit, depending on its ability to pay

• whether to continue selling to the business

• whether to sell to the business on credit, depending on its ability to pay

• 
  whether to lend money to the business