Question

An annual report is issued by a company for:

• A. Directors
• B. Management
• C. Shareholders
• D. Auditors

Hint:

Annual Report = Communication tool to shareholders about financial health and future outlook of the company.

Answer 1

The Correct Option is C

Step 1: Purpose of annual report.
An annual report is a formal communication of financial statements, directors’ reports, and audit reports.
Step 2: Recipients.
The annual report is prepared by management and directors, but it is issued for shareholders to provide transparency of performance.
Step 3: Conclude.
Hence, the annual report is issued for shareholders.
Final Answer: \[ \boxed{\text{Shareholders}} \]