Which group is primarily concerned with obtaining dividends from a business?

Prepare for the City and Guilds Level 3 Business Administration Exam with comprehensive study materials including flashcards and quizzes. Master key concepts and excel in your test with detailed explanations and practice questions.

The group primarily concerned with obtaining dividends from a business consists of owners or shareholders. Shareholders are individuals or entities that own shares in a company and are therefore part of its ownership structure. Their main interest lies in the financial return on their investment, which often comes in the form of dividends, distributed profits from the company's earnings.

When a company generates profit, it may choose to distribute a portion of it to shareholders as dividends. This distribution is a key driver for investors when they decide to buy shares in a company. Shareholders expect to see a return on their investment, and dividends are a direct method through which this return is realized.

In contrast, employees focus on their salaries and benefits rather than dividends, while managers typically concentrate on running the business effectively and may have performance-related bonuses linked to overall company success, rather than direct dividends. Suppliers, on the other hand, are primarily concerned with payments for goods and services they provide, not with the financial returns of the business's profit distribution to its owners.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy