For an Organization Focused on Profit, Define Two Commonly Used

question 7

Essay

For an organization focused on profit, define two commonly used financial measures and explain what they indicate about performance.

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Definitions:

External Stakeholders

Individuals or groups outside of a company who are affected by or have an interest in its operations, such as customers, suppliers, and the community.

Managerial Information

Information that is relevant and useful to company management for decision-making purposes, often encompassing financial, operational, and strategic data.

Managerial Information

This refers to the data and reports that are specifically prepared for managers within an organization to aid in strategic planning, decision-making, and operational control.

Evaluate Performance

The process of assessing the effectiveness, efficiency, and productivity of an employee, team, or organization.