Read e-book online ACCA - P1 Professional Accountant: Study Text PDF

By BPP Learning Media

ISBN-10: 0751763748

ISBN-13: 9780751763744

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Extra resources for ACCA - P1 Professional Accountant: Study Text

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Not to do so will result in breakdown of social cohesion leading to everyone being morally worse off, and possibly economically worse off as well. Exam focus point A question issued by the examiner required students to apply these two views of stakeholders to viewpoints expressed by directors. 6 Classifications of stakeholders Stakeholders can be classified by their proximity to the organisation. Stakeholder group Members Internal stakeholders Employees, management Connected stakeholders Shareholders, customers, suppliers, lenders, trade unions, competitors External stakeholders The government, local government, the public, pressure groups, opinion leaders There are other ways of classifying stakeholders.

However this does not provide any incentive to make more efficient use of assets: the higher the capital employed, the higher the profit. In addition the regulator will be concerned with: (a) (b) Actively promoting competition by encouraging new firms in the industry and preventing unreasonable barriers to entry. Addressing quality and safety issues and considering the social implications of service provision and pricing. 2 Costs of regulation The potential costs of regulation include the following.

It can also in a negative sense mean those who have the right of veto over major decisions (creditors with a charge on major business assets can prevent those assets being sold to raise money). Stakeholders may be more influential if their power is combined with: • • 18 Legitimacy; the company perceives the stakeholders' claims to be valid Urgency; whether the stakeholder claim requires immediate action 1: Scope of corporate governance ⏐ Part A Governance and responsibility Level of interest reflects the effort stakeholders put in to attempting to participate in the organisation's activities, whether they succeed or not.

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ACCA - P1 Professional Accountant: Study Text by BPP Learning Media

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