External users are outsiders to the company who may significantly affect the business entity.

• A. Outsiders to the company who may significantly affect the business
• B. Internal decision-makers in the company
• C. Employees
• D. External parties who may influence the company's outcomes

Answer: (A)

External users are individuals or entities outside the organization who rely on the company’s financial information to make decisions that could affect the business. They’re not part of the company, yet their actions—like investing, lending, or choosing to do business—can influence the entity’s operations and value. This description captures both the outside position and the potential impact on the business, which is why it fits best.

Internal decision-makers and employees are not outsiders, so they don’t fit the definition of external users. The option that mentions external parties who may influence the company's outcomes is close in meaning but doesn’t as clearly emphasize that these are outsiders who use financial information to judge and affect the business.