The firm's creditors are primarily interested in the short-term liquidity of the company and its ability to make interest and principal payments.

Question

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Creditors are concerned with their own interests, such as getting paid back, and therefore focus on a company's short-term liquidity and ability to make interest and principal payments. They may not be as concerned with the long-term profitability or growth potential of the company.

The Firm's Creditors Are Primarily Interested in the Short-Term Liquidity