People who are interested in knowing financial information are known as Stakeholders.
These are
| Stakeholders | Who are they | Objectives | |
Owners |
They invest capital in the business and get profits from the business |
Profits, growth of the business |
|
Worker |
Employees of the business who give in their time and effort to make a business successful |
Job security, job satisfaction and a satisfactory level of payment for their efforts |
|
Managers |
Employees of the business who manage a business. They lead and control the workers to achieve organisational goals |
High salaries, Job security, Status and growth of the business |
|
Consumers |
These are the people who buy the goods and services of the business. |
Safe and reliable products, value for money, proper after sales service |
|
Government |
Government manages the economy. The government charges a tax from the business and also monitors the working of businesses in the country |
Successful businesses, employments to be created, more taxes, follow laws |
|
The community |
Community is all the people who are directly or indirectly affected by the actions of the business. |
They expect more jobs, environmental protection, socially responsible products and actions of the business. |
Stakeholders are interested in getting information about business, in order:
- To compare the business performance over several financial periods. This is known as Intra-firm comparison.
- To compare the business performance with that of other businesses within the same industry also known as Inter-firm comparison