Uses and users of financial info Flashcards
1
Q
who uses financial information
A
managers owners/shareholders employees banks government comp suppliers
2
Q
how do managers use financial information
A
- compare performance after decision
- assess and set targets
- improve profitability
3
Q
how do owners use financial information
A
- see if business is growing
- compare return to other opportunities
4
Q
how do employees use financial information
A
- check profitability to determine if pay rise is possible
- asses job security due to liquidity
5
Q
how do banks/lenders use financial info
A
-evaluate liquidity to determine if loan will get paid
6
Q
how do the government use financial information
A
-asses state of economy to predict economic growth and unemployment levels
7
Q
how do competitors use financial info
A
- compare profits/sales to asses competitiveness
- highlight inefficient business with potential for take-over
8
Q
why do suppliers use financial info
A
- determine if the business can pay for goods
- determine likelihood of business survival of major consumers
