Knowee
Questions
Features
Study Tools

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
🧐 Not the exact question you are looking for?Go ask a question

Solution

In business, the stakeholders who primarily concern themselves with the profitability of the company can be categorized as follows:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

This problem has been solved

Similar Questions

Analyse one reason why a business might have lower profits by meeting stakeholder aims

Which stakeholders' concern is that the business pays them direct and indirect tax?YOUR ANSWERYour AnswerCentral governmentLocal governmentA lawyerThe landlord

Amongst all the stakeholders primary stakeholders are Bankers Customers Shareholders Supplier

Which of the following has an indirect interest in the business?YOUR ANSWERYour AnswerA new investorCustomersEmployeesOwners and founders

Commercial bank of ceylon plc 10 stakeholders and their intentions for the company and how they can obtain that information from annual report last year

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.