A creditor is ultimately concerned with the ability of a firm to generate profits.

Question

Quizplus · Accepted Answer

A creditor is primarily concerned with the ability of a firm to repay its debts, not necessarily its ability to generate profits. While profitability is a factor in a company's ability to repay debts, it is not the only consideration. A creditor may also be interested in a company's cash flow, assets, and overall financial stability.

A Creditor Is Ultimately Concerned with the Ability of a Firm