Paper 1 · June 2019 · Sources of Finance
Shareholders of a company such as XYZ Bank Ltd are mainly interested in its financial statements in order to...
Aassess the bank's liquidity and its ability to pay dividends.
Bdetermine the exact individual salaries paid to each member of staff.
Cgain direct voting control over the bank's day-to-day operations.
Davoid paying any tax on the dividend income they receive.
Explanation
Shareholders read financial statements to judge whether the bank is liquid and solvent and can afford to pay dividends, and to decide whether to invest further or withdraw their investment, not to set salaries, gain operational control, or avoid tax.
Derived from ZIMSEC Business_studies Paper 1, June 2019, Q8