Business Studies 9609 paper 1
TOPICAL(unit wise) General - Unit 1 & 5 - 9707/11/M/J/14 - Discuss the usefulness and limitations of published accounts for business stakeholders in measuring the performance of a company. [20] • Published accounts are financial records of business transactions which provide essential information to groups within and externally to a business (e.g., internal managers, staff, shareholders, banks, etc.). • Published accounts give information on profitability, value of fixed assets, liquidity, growth/investment potential. • Interested stakeholders may use accounts and examine performance indicators such as net profit margin, level of sales, long-term liabilities. These provide indicators of performance and financial stability/strength – more than one year’s accounts may be examined. • While of potential value to an interested stakeholder, published accounts have limitations: ...