1. Who is interested in monitoring the performance of a business?
Stakeholders are people who have a fi nancial interest in how well a business is doing. They exist in all types and sizes of organisations. Different stakeholders are interested in the fi nancial performance of a business for different reasons.
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Business owners will want to know how well the business is performing fi nancially, especially its ability to generate profi ts and pay dividends.
Managers in the business, like Sandra Roche, will want to know how well they are managing the fi nances of the business compared to previous years.
Employees are interested in their job security and their prospects of receiving wage increases.
Banks are interested in the ability of a business to repay its loans.
Suppliers are interested in a fi rm’s ability to pay for goods supplied on credit.
The Revenue Commissioners use a fi rm’s fi nal accounts to calculate how much tax has to be paid (the tax due on profi ts).
Business Careers The Chief Executive Offi ce (CEO) is the most senior manager in charge of running an organisation. The most senior manager is sometimes known as the Managing Director.
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Did you know?
Competitors are not regarded as stakeholders in a business. However, they would also be very interested in seeing the fi nancial accounts of a rival. Access to such information could help competitors to see whether a rival business is doing well and is going to expand, or whether it is struggling to survive.
