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Bsbwor501 Unit 1 Assignment

Decent Essays

I. Question One 1. Part a Owners: The owner(s) are those who will have “full rights to manage every aspect of the organization” (Hubstaff Support 2014) Investors: These are people who invest money into an organisation to obtain a particular number of shares and earn dividends relative to their proportion of investment. Creditors: These are the entities who lend money to an organisation(s) with the expectation that it will be repaid. Employees: Those who work for an organisation in exchange for salaries and other benefits Customers: Those who purchase a product of an organisation 2. Part b These different stakeholders consider financial information available to them from slightly different perspectives to meet their own needs (Carlon 2016). …show more content…

Prospective and current investors Prospective investors need information to predict a company's potential for success, profitability and dividends based on the profits estimated in statement of financial position in order for decision-making. Current investors are also interested on the estimated profits for the future in order to determine whether or not they should continue to invest in an organisation. 3. Creditors They are interested in the company’s ability to pay obligations when they become due, especially during the operating cycle. 4. Employees They are concerned about the company’s profitability and stability, which affect the ability of the company to pay salaries and provide employee with benefits. They may also be interested in its financial position and performance in regards to their career development opportunities. 5. Customers If the company has a good reputation among consumers and its products is a popular choice, the customers become interested in the company’s ability to maintain stability of manufacturing. II. Question Two 1. Part …show more content…

It provides the stakeholders’ of a particular organization with information regarding their business activities such as its “impacts on the economic” factors of society, “environment” and “social community” (Carlon 2016). Companies often choose to supply their stakeholders with a sustainability report as its main purpose is to “improve internal processes, engage stakeholders and persuade investors” (Wikipedia 2016) which will in turn build the company’s overall success. This means that it could result in more efficient operations, attract and obtain potential employees, expand the size of its current target market and appeal to prospective investors. Firstly, the impacts on the economy outlines the organization’s use of natural resources in its everyday operations to create value that will lead to satisfying the needs of customers’ needs as well as achieving the organizational goals. Secondly, the environmental component discloses details that will inform both the internal and external users about how its daily activities influence the surrounding environment. It should show whether the influences have a positive or negative effect in regards to preserving the environment in which we work

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