business majors !!Help me.?

Question

I need to know what internal and external stakeholders do in a business and what the difference is.
Thanks loads coz I cant find it on the internet.

Answer 1

This is from the Framework to the IAS. A stakeholder is any party who is interested in the co. for whatever reason. (a) and (b) are internal and the rest external, altho' some would argue that investors are external. But bearing in mind that investors are the co's owners, would you call your owner an outsider?

(a) Investors. The providers of risk capital and their advisers are concerned with the risk inherent in, and return provided by, their investments. They need information to help them determine whether they should buy, hold or sell. Shareholders are also interested in information which enables them to assess the ability of the enterprise to pay dividends.

(b) Employees. Employees and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the enterprise to provide remuneration, retirement benefits and employment opportunities.

(c) Lenders. Lenders are interested in information that enables them to determine whether their loans, and the interest attaching to them, will be paid when due.

(d) Suppliers and other trade creditors. Suppliers and other creditors are interested in information that enables them to determine whether amounts owing to them will be paid when due. Trade creditors are likely to be interested in an enterprise over a shorter period than lenders unless they are dependent upon the continuation of the enterprise as a major customer.

(e) Customers. Customers have an interest in information about the continuance of an enterprise, especially when they have a long-term involvement with, or are dependent on, the enterprise.

(f) Governments and their agencies. Governments and their agencies are interested in the allocation of resources and, therefore, the activities of enterprises. They also require information in order to regulate the activities of enterprises, determine taxation policies and as the basis for national income and similar statistics.

(g) Public. Enterprises affect members of the public in a variety of ways. For example, enterprises may make a substantial contribution to the local economy in many ways including the number of people they employ and their patronage of local suppliers. Financial statements may assist the public by providing information about the trends and recent developments in the prosperity of the enterprise and the range of its activities.

Answer 2

Internal stockholder's shares are capital stock. Usually this reflects the amount of capital (money) that the individual has invested into the company. Regardless of the business type (i.e. partnership, LLC, corporation), the capital stock shares translate into the amount of decision making power the individual has in the company. In corporations, capital shareholders sit on the Board of Directors which must meet a minimum of once a year. Capital stock (and who owns it) is reported on the Balance Sheet in the Owner's Equity section.

External investors buy shares of "common stock". Common stock is the type that pays dividends. There is another type of external stock called "prefered stock". Prefered stock holders receive dividends before common stock holders. These stocks can give the owner voting rights at shareholder meetings. The dividends paid out (earnings per share) is reported on the Balance Sheet also, but as a liability.

The biggest difference b/t the two, asides from the decision-making power, is the ownership of assets. Capital stock can be valued against the actual physical assets of a company. Common stock ownership does not translate into ownership of a physical asset.

That is the basics, it gets alot more complicated from there...

Answer 3

stakeholders are key groups or institutions internal being that they work for said company and external being a third party that is affected by said company's actions