Question

______ users are groups outside the business entity, who uses the information to make decisions about the business entity.

• A. Mangement
• B. Emplyoee
• C. Owner
• D. External

Answer 1

The correct option is D External

There are various stakeholder in the business who want to know about the business performance of the organization. These are internal and external users.

Internal users are management, employees and accountants who wants to analyze the business performance based on various financial reports.

External users are lenders, creditors, investors which are more interested to know about the financial strength to take a decision about the business entity in terms of security of their money.