Creditors are primarily interested in short-term liquidity of the company and its ability to make interest and principal payments.

Name: Creditors are primarily interested in short-term liquidity of the company and its ability to make interest and principal payments.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Creditors typically focus on the short-term liquidity of a company, as they want to ensure that the company can meet its interest and principal payments on time. They are less concerned with long-term profitability or growth potential.

Creditors Are Primarily Interested in Short-Term Liquidity of the Company