Which of the following questions is more likely to be asked by the firm's financial lenders as opposed to the firm's managers or potential investors?
A)How should we finance firm improvements and investments?
B)Should we continue to lend money to this firm?
C)Should we buy equity in this firm?
D)What are the accounts receivable policies for the firm?

Question

Quizplus · Accepted Answer

Financial lenders are concerned with the risk of lending to the firm and the likelihood of the firm being able to repay the loan, so they are more likely to ask if they should continue to lend money to the firm. Managerial and investor questions are more focused on the overall strategy and performance of the firm. Choices A, C, and D are more likely to be asked by managers or potential investors.

Which of the Following Questions Is More Likely to Be