Investors and Creditors Are Interested in the Probability That Their

question 2

Multiple Choice

Investors and creditors are interested in the probability that their original investment or loan will eventually be returned,and that they will receive a reasonable return while their funds are invested or borrowed.These expectations are collectively referred to as:

• A)Expected profitability.
• B)The objectives of financial reporting.
• C)Cash flow prospects.
• D)Financial position.

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Definitions:

Primary Motivator

The main influence or drive behind a person's actions or behavior, often related to fulfilling basic needs or achieving personal goals.

Financial Incentives

Monetary rewards or penalties intended to motivate particular behaviors or outcomes in individuals or organizations.