C3 - Stakeholders

Question 1

What are stakeholders?

Answer 1

A person or organisation that has an interest in another organisation.

Both external and internal

Question 2

Examples of internal stakeholders?

Answer 2

Employees and managers

Question 3

Examples of external stakeholders

Answer 3

Shareholders, banks, customers and hmrc etc

Question 4

What does Management Information Systems (MIS) mean??

Answer 4

Computer based system which provides up to date, accurate and relevant information to management.

Question 5

What’s the main benefit to having a Management Information System?

Answer 5

By having an effective MIS, this will enable management to make informed decisions quickly

Question 6

What type of data is produced by an accounting MIS??

Answer 6

Sales figures 
Inventory levels 
Customer details
Budgetary control reports (variances) 
Profitability

Question 7

Return on capital employed formula

Answer 7

Operating profit / (equity + non current liabilities) X 100%

Or

Operating profit / (non current assets + net current assets) X 100%

Question 8

Meaning of objectivity

Answer 8

Decisions based on facts not opinions or influenced by other people.

Question 9

Meaning of integrity

Answer 9

Being straightforward and honest with people

Question 10

Meaning of professional behaviour

Answer 10

Complying with the rules and regulations that govern the accounting profession

Question 11

Meaning of competence and due care

Answer 11

Having the right level of skills to complete the tasks and working carefully through set tasks which may involve declining work if it can’t be completed.

Question 12

Meaning of confidentiality

Answer 12

Not disclosing information obtained unless legally obliged to

Question 13

What does sustainability mean

Answer 13

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Question 14

3 main objectives for sustainability

Answer 14

1 - economic growth/growth - decisions based on long term growth of the business

2 - environmental protection/planet - decisions do not effect the environment.

3 - social equality/profit - decisions promote the well being of all employees and community

Question 15

Examples of economic growth (sustainability)

Answer 15

Using fair pricing policies when charging customers

Paying fair wages rather than the lowest

Question 16

Examples of environmental protection (sustainability)

Answer 16

reducing carbon footprint of a business by introducing work schemes/car shares

Suppliers who promote sustainable practices

Question 17

Examples of social equality (sustainability)

Answer 17

Sponsoring local charity’s

Employing local labour where possible

Question 18

What does a Statement Of Cash Flow tell us?

Answer 18

• explanation of changes in the cash position
• investments made in assets
• sources of financing

Question 19

What 3 factors does the Statement Of Financial Position tell us?

Answer 19

• liquidity
• gearing
• return on capital employed

Question 20

What does the Statement Of Profit or Loss tell us?

Answer 20

• sales performance
• gross and net profit margins
• comparison of areas of expenses

Question 21

How to calculate capital employed?

Answer 21

Equity ADD non current liabilities

Question 22

What does EPOS stand for

Answer 22

Electronic point of sale system

Question 23

What does an electronic point of sale system do

Answer 23

• provide accurate product information
• accurate margin analysis on product basis
• more focused promotions on products to increase sales
• access sales information quickly and accurately

Question 24

What is a cost benefit analysis?

Answer 24

It tells a company/manager whether the benefits of new resources outweigh the costs incurred.