In order for investors and creditors to decide whether to invest in a company or loan a company funds they may:
A)Only analyze financial statements.
B)Only 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 should analyze financial statements to assess a company's financial health, as well as focus on corporate governance to ensure the company is operating ethically and effectively. Both aspects are important in making investing or lending decisions. Therefore, the best choice is to both analyze financial statements and focus on corporate governance. A and D are not viable options, as both financial statements and corporate governance are important factors in investment and lending decisions. B alone is insufficient, as financial analysis is crucial to determining a company's viability.

In Order for Investors and Creditors to Decide Whether to Invest