Creditors Are More Concerned About Profitability,dividends,and Future Share Prices Than

question 104

True/False

Creditors are more concerned about profitability,dividends,and future share prices than about short-term liquidity and long-term solvency.

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Definitions:

Critical Thinking

Critical Thinking is the analytical process of objectively evaluating information to make reasoned judgments and solve problems.

Investment

The act or method of distributing resources, typically funds, with the aim of earning a return or gaining financial profit.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.

Tangible Capital

Physical assets possessed by a business that are used in producing goods or services, such as buildings or machinery.