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Finance Management: Stakeholders and Decision Making; Financial Statements

I need help with the following two questions regarding financial management:
(a) Explain what the information needs of various stakeholders are for their respective decision making needs.
(b) Explain the effects of the different types of financing on the financial statements.

Solution Preview

We have a few different types of stakeholders and their needs are all different. We have investors, and they need timely information for financial decision-making purposes. The investors analyze financial and non-financial data to determine if their investment in the company is relatively safe, if they should invest more, or if they should pull their money out because it appears that their investment is at risk. Potential investors are also stakeholders that analyze data in the same way. We have internal stakeholders, which are mainly employees. This group of stakeholders analyses information to determine if the company appears to remain viable. If not, employees can begin their decision-making process to determine the ...

Solution Summary

This solution explains the information needs of various stakeholders with respect to their decision making needs. This solution also provides a detailed explanation regarding the effects of the various types of financing on the financial statements. Includes 2 resources.