Creditors of a business are more concerned with the future cash flows of a business than the future return on equity.

Name: Creditors of a business are more concerned with the future cash flows of a business than the future return on equity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Creditors are more concerned with ensuring that the business has enough cash flow to make loan payments, while equity investors are more concerned with the return on their investment.

Creditors of a Business Are More Concerned with the Future