When evaluating the liquidity of a proprietorship,creditors will likely base their decision on:
A)The business ability to generate a profit.
B)Previous debts of the business.
C)The financial strength of the owner.
D)The total assets owned by the business.

Question

Quizplus · Accepted Answer

Creditors often consider the financial strength of the owner when evaluating the liquidity of a proprietorship because the owner's personal financial resources can impact the business's ability to meet its obligations.

When Evaluating the Liquidity of a Proprietorship,creditors Will Likely Base