Which stakeholders' main concern is that the business earns a profit?YOUR ANSWERYour AnswerLendersEmployeesA partnerBank
Question
Which stakeholders' main concern is that the business earns a profit?
- Your ANSWER
- Your Answer
- Lenders
- Employees
- A partner
- Bank
Solution
In business, the stakeholders who primarily concern themselves with the profitability of the company can be categorized as follows:
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Lenders: Lenders (such as banks or financial institutions) provide capital to the business with the expectation of receiving their money back along with interest. Their main concern is often the business's ability to generate enough profit to repay the loans.
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Bank: Similar to lenders, banks are financial institutions that provide loans to businesses. Their primary focus is on the financial health of the business, and they assess the profitability to ensure that the loan can be repaid.
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Partners: Business partners are also concerned about profitability because their returns on investment depend on the profits generated by the business. A share in profits could translate into higher personal earnings.
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Employees: While employees may be concerned about the company's profitability, their primary focus generally leans towards job security and benefits. However, in some circumstances, employees may have a vested interest in profitability if they are compensated through profit-sharing or bonuses.
In summary, the main stakeholders with a primary concern for the business earning a profit are lenders, banks, and partners. Employees have a secondary interest based on job security and benefits tied to the company's financial performance.
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