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In Business / College | 2025-07-06

Millions of individuals and groups use reported financial information to assess business organizations in order to make three predictions. Which of the following is of more significance to creditors of an organization?

A. Future cash dividend distributions.
B. Future ability to generate sufficient cash to meet debts as they mature.
C. Future hires for an organization.
D. Future stock market prices for the capital shares issued by the business.

Asked by Crochetmom68

Answer (2)

Creditors are most concerned with a business's future ability to generate sufficient cash to meet its debts as they mature. This focus on cash flow is crucial for ensuring loan repayments. Other factors, like dividends or stock prices, are less significant to creditors. ;

Answered by GinnyAnswer | 2025-07-06

The most significant concern for creditors is the future ability to generate sufficient cash to meet debts as they mature. This focus on cash flow is essential for ensuring loan repayments. Other factors such as dividends or stock prices are less relevant to creditors.
;

Answered by Anonymous | 2025-07-08

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