LXA is a private limited company based in country Z. It makes children’s clothing. LXA sells its products in competitive markets in several countries. LXA’s directors are considering different ways for the business to grow. The Finance Director has prepared some financial information before meeting with some of LXA’s stakeholders. An extract is shown in the Table. The Marketing Director wants LXA to start producing clothing for adults.
- LXA TABLE 2.JPG (18.64 KiB) Viewed 174 times
11 Explain one way each of the following stakeholder groups might use LXA’s financial information. [6]
Possible KN Points:
Suppliers:
• Liquidity position
• Assess risk of default
• See level of debts
Shareholder:
• Help make decisions on keeping, buying or selling shares
• Check performance e.g. profit
• Assess (possible) level of dividend