(a) Shareholders(business owners)
The owners of a business would wish to know how efficiently management is
performing its steward function. They would also want to know about the
ethical compliance and sustainability of the business venture.
(b) Management
Management is the body entrusted in the day to day management of the business
affairs on steward basis. As such, they need information about financial information so as to manage business efficiently and to make effective control and planning decision.
(c ) Suppliers
Suppliers are entities which supplies the business with goods and services to be
able to run on daily basis. Thus, they would be interested to know the liquidity
position of the firm .i.e its ability to meet its obligation as and when they fall due.
(c) Customers
Customers are people who buy the goods and services from a business. As such,
they would want to be assured that the business is stable. Also, they are
interested with the quality of the product and hence due care should be taken
(d) Lenders
These are institutions which finance business operations to be able to satisfy its customers. Therefore, they are interested in the solvency of the firm, ability to keep up with interest payments, and repaying the principal.
(e) Government
The government would want to know about business profits to assess the tax
payable. The government would want business to conduct their affairs in a
socially acceptable manner and ensure that they adhere to the laws of the land.
(f) Employees
These are people who work in an organization. They would therefore want to
know the results of the company so as to use the same to negotiate for their
higher wages. Similarly; they would also want to know whether the business will
continue providing remuneration benefits so that if not can switch jobs.
Employees would also want to see their business going at a concern with the
ability to sustain their employment
(g) General public
Members of the public would be interested to know how business activities are
affecting their health in terms of environmental degradation, pollutions and
whether the business is giving back to the society in terms of corporate social
responsibility.
Judiesiz answered the question on May 22, 2018 at 12:35