Long-term creditors are usually most interested in evaluating __________

Business

1 answer:

Finger [1]3 years ago

5 0

Answer: Solvency

Explanation:

Long-term creditors want to ensure that a company will pay its outstanding debts. Solvency is the ability of a company to meet its long-term debts and financial obligations. Solvency is essential to staying in business as it demonstrates a company's ability to continue operations into the foreseeable future. Periodically checking your business’s solvency ratios can help ensure your company’s fiscal health. In addition to helping businesses evaluate their capital structures, solvency ratios may assist owners in determining whether internal and external equities must be redistributed.

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On December 31, 2017, Faital Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note

garik1379 [7]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

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Which of the following statements about entrepreneurs is FALSE? A. Entrepreneurs are people who start a new business. B. Entrepr

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Answer:

C. Entrepreneurs aren’t exposed to any risk when starting a new business.

Explanation:

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You run out and call 911 or whatever the number is for you and if you’re on fire stop drop and roll because if you run you’re only giving the fire more oxygen

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2 years ago

define a stock market bubble, describe what happens after a bubble, and explain how the law of supply and demand creates both bu

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Answer

A bubble is a phenomena in investing that occurs when investors increase their demand in assets so much that they cause the price to move to a value beyond accurate reflection of its actual worthiness. When a bubble happens, the prices of stock will fall rapidly.When there is increase in the share price of stock rapidly caused by individual-perpetuating, the share value can rise beyond asset value making investor to withdraw their money faster because supply will exceed demand and cause share price to fall.

An increase demand on assets by investors will make the price to increase beyond rational economic value. The real worth of the stock will now be determined by firm’s performance. Investing in bubble can appear to last forever, but because they are formed by self-perpetuated reasons, they eventually fall and the money that was invested into them is lost. In such cases, investors would run to withdraw their money and avoid the loss of fall in share prices.

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