.......................are interested in information on the stability, profitability and distribution of wealth within the business.

Unions and employee groups

The correct answer is option 2- Unions and employee groups.

The external users are interested in the following-

• Investors and potential investors-information on the risks and return on investment.
• Unions and employee groups-information on the stability, profitability and distribution of wealth within the business.
• Lenders and financial institutions-information on the creditworthiness of the company and its ability to repay loans and pay interest.
• Suppliers and creditors-information on whether amounts owed will be repaid when due, and on the continued existence of the business.
• Customers-information on the continued existence of the business and thus the probability of a continued supply of products, parts and after sales service.
• Government and other regulators- information on the allocation of resources and the compliance to regulations.
• Social responsibility groups, such as environmental groups-information on the impact on environment and its protection.
• Competitors-information on the relative strengths and weaknesses of their competition and for comparative and benchmarking purposes.