Owners' equity is meaningful for investors,but not for lenders.

Name: Owners' equity is meaningful for investors,but not for lenders.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Owners' equity represents the residual interest in the assets of a company after deducting liabilities, which can act as a cushion in case of losses. This can be meaningful for lenders as it represents the level of financial strength of a company. Lenders may prefer a higher level of owners' equity as it reduces their risk of not getting paid back.

Owners' Equity Is Meaningful for Investors,but Not for Lenders