Stakeholders (Edexcel IGCSE Accounting)
Exam board Pearson Edexcel · IGCSEUpdated 2025-06-16
What are the stakeholders of a business?
- Stakeholders are people or groups of people who have an interest in the business
- Stakeholders can be internal or external to the business
- Stakeholders have different interests in the financial statements of the business
Internal Stakeholders
Spec point —
IGCSE_ACCOUNTING:S1.120
Why might internal stakeholders be interested in the accounting information?
| Stakeholder | Reason for their interest in the financial statements |
|---|---|
| Owners | - To compare the performance with previous years - To evaluate the profitability of the business - To plan for the future - To make decisions about which areas need action |
| Managers | - To check on the efficiency of the business - To check on the progress of the business compared to previous years |
| Employees | - To check that the business is profitable and likely to continue to trade so that they have job security - To check the profitability to see whether a pay rise is reasonable |
External Stakeholders
Spec point —
IGCSE_ACCOUNTING:S1.120
Why might external stakeholders be interested in the accounting information?
| Stakeholder | Reason for their interest in the financial statements |
|---|---|
| Customers | - To check on the probability that their goods will continue to be supplied by the business |
| Suppliers | - To check whether the business can pay for its supplied goods as agreed - To set the credit terms for goods and services |
| Banks | - To assess whether the business is suitable for an overdraft or a bank loan - To assess the value of the assets owned by the business so that they can be used as security against loans |
| Investors | - To assess the profitability of the business - To assess the likelihood of the investors making money if they invested in the business |
| Competitors | - To compare the profitability of the business against their own business - To identify gaps in the market |
| Government and tax authorities | - To calculate how much tax is owed - To gather data for the government statistics |
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