Which of the following statements is incorrect with respect to creditors and equity investors?
A) Creditors are concerned with assessing the short- term liquidity of a company.
B) Equity investors are concerned about dividend payments.
C) Creditors are concerned with assessing the long- term solvency of a company.
D) Both creditors and equity investors are concerned about security prices.

Question

Quizplus · Accepted Answer

Equity investors are concerned about security prices as it affects their investment value, but creditors are more focused on the company's ability to repay debts rather than security prices.

Which of the Following Statements Is Incorrect with Respect to Creditors