Which of the Following Statements Is Incorrect with Respect to Creditors

question 73

Multiple Choice

Which of the following statements is incorrect with respect to creditors and equity investors?

• A)Both creditors and equity investors are concerned about security prices.
• B)Creditors are concerned with assessing the short?term liquidity of a company.
• C)Creditors are concerned with assessing the long?term solvency of a company.
• D)Equity investors are concerned about dividend payments.

---

Definitions:

Members

Individuals or entities that are part of a group, organization, or society, typically with certain rights or obligations.

AFL

The American Federation of Labor is a nationwide coalition of labor unions within the United States.

CIO

Congress of Industrial Organizations, historically a federation of labor unions in the United States.

Taft-Hartley Act

A federal act passed in the United States in 1947 that serves to reduce the power and activities of labor unions.