In order for investors and creditors to decide whether to invest in a company or loan a company funds they may:
A) Analyze financial statements.
B) Focus on corporate governance.
C) Both analyze financial statements and focus on corporate governance.
D) Neither analyze financial statements nor focus on corporate governance.

Question

Quizplus · Accepted Answer

Investors and creditors need to analyze financial statements to determine the financial health of the company, but they also need to focus on corporate governance to assess the company's management, ethical practices, and overall strategy. Therefore, both analyzing financial statements and focusing on corporate governance are crucial for making investment or lending decisions.

In Order for Investors and Creditors to Decide Whether to Invest