VCG manufactures high-quality briefcases and travel bags. VCG has 50 skilled production workers in its factory. VCG is planning to expand by building a second factory. Different locations are being considered. The Managing Director is reviewing VCG’s financial statements. An extract is shown in the table below. Both internal and external stakeholder groups of VCG are interested in this information.
- VCG.JPG (17.97 KiB) Viewed 177 times
09 Explain one way each of the following stakeholder groups might use VCG’s accounts: [4]
Possible KN Points:
Shareholders:
• Help assess business performance / profits
• Help decide whether to continue to invest
• Assess the liquidity
• To compare performance over time
• Compare performance between different businesses
Suppliers:
• Can see the total value / level of debt
• Assess whether the business has sufficient cash
• Assess profitability / level of sales