A Short-Term Creditor Is Primarily Interested in the ___ of the Borrower

question 12

Multiple Choice

A short-term creditor is primarily interested in the ___ of the borrower.

• A) liquidity
• B) profitability
• C) comparability
• D) solvency

---

Definitions:

Negative Relationship

A relationship between two variables, X and Y, in which a decrease in X is associated with an increase in Y and an increase in X is associated with a decrease in Y.

Positive Relationship

A situation where two variables move in the same direction, meaning as one variable increases, the other variable also increases.

Inverse Relationship

A term used to describe a situation where the increase in one variable leads to the decrease in another, and vice versa.

Positive Slope

A line or curve on a graph that inclines upwards, indicating a direct relationship between two variables, such as price and quantity supplied.