Six Groups That Do Business with a Business - dummies

Six Groups That Do Business with a Business

Part of Understanding Business Accounting For Dummies Cheat Sheet

Six main groups are intimately connected to the life of a business. Knowing who they are, what they expect and how you’re interacting with each of them is essential.

  • Customers, who buy the products and services that the business sells.

  • Employees, who provide services to the business; they are paid wages and salaries and are provided with a broad range of benefits such as a pension plan and paid holidays.

  • Suppliers and vendors, who sell a wide range of things to the business such as legal advice, electricity and gas, telephone service, computers, vehicles, tools and equipment, furniture and even audits.

  • Debt sources of capital, who loan money to the business, charge interest on the amount loaned and have to be repaid at specific dates in the future.

  • Equity sources of capital, the individuals and financial institutions including private equity firms who invest money in the business and expect the business to earn profit on the capital they have invested.

  • Government agencies that collect income taxes, payroll taxes, value-added tax and excise duties from the business, or who provide support and grants to encourage business expansion and international trade.