Judgments
final account stakeholders
- Institution
- PEARSON (PEARSON)
explained information on stakeholders
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Stakeholders - Shareholders – they are internal stakeholders of a business, and they are owners of the
company and practically part-owners if there are more than one, however they are not always
involved in the day-to-day running of the business. Shareholders invest their money into the
business by buying shares and have the possibility to profit from the company if the business is
doing well. The key interest of a shareholder is the profitability of the project or business.
Overall shareholders want the business to make a huge revenue so that they can have a higher
share price. shareholders need financial data to measure management’s performance and to
evaluate their own holdings.
Directors – they are internal stakeholders of a business, and they are responsible for overseeing
the affairs of the company. They must comply with their legal obligations as a director under the
corporation act 2001. The duty of a director to declare any interest they have in a proposed
transaction or arrangement with the company as they are not allowed to have any interest in a
contract with the company unless that interest has been allowed by the members. They make
the strategic and operational decisions of the company. They need to efficiently and effectively
oversee a company’s activities and make the best decisions.
Managers – managers are internal stakeholders of the company. They are responsible for the
processes of getting all the tasks completed efficiently with and through co-workers and setting
and attaining the business goals. They also plan, organize, direct and handle resources to attain
particular goals. Managers wan to earn high wages and they want to keep their jobs, so they lay
their interest in the Finacial health and success of the business. They are interested in
information related to budgeting, planning, decision making and control. They are also
interested in the internal management accounts.
Investors- they are internal stakeholders in the business. An investor is an individual that puts
their money into a business for a financial return. The key goal they have is to minimize risk and
maximize return. The interest of the investor is that they want to see a return on their
investment. All the things company finanical statement reveal to an investor, there are four key
factors investors considers such as profitability, revenue, debt level, and cash flow.
Government – the government is an external stakeholder in the business. The government
attempts to shape business practices through both directly and indirectly, implementing rules
and regulations. The government most often directly influences companies by launching
regulations, laws and rules that dictate what organizations can and cannot do. The government
tries to encourage businesses to invest and create more jobs. The laws they introduce can
sometimes help businesses and sometimes hinder firms from doing this. The reason for this is
that the government needs to consider the employment rights of employees as weel as the
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