Which of the following questions is more likely to be asked by the firm's potential investors as opposed to the firm's managers or financial lenders?
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

Potential investors are interested in whether they should buy equity in the firm or not. A and D are more likely to be asked by managers and financial lenders, while B is more likely to be asked by current lenders assessing credit risk.

Which of the Following Questions Is More Likely to Be