Question : Which party is interested to know the short-term solvency position of a firm, i.e., the ability to meet its short-term liabilities?
Option 1: Creditors
Option 2: Management
Option 3: Shareholder and owners
Option 4: None of the above
Answer (1)
25th Jan, 2024
Correct Answer: Creditors
Solution : Answer = Creditors
The ability of a business to pay its short-term obligations is important to short-term creditors. Financial organisations known as "short-term creditors" offer short-term loans—typically lasting less than a year—to meet a business's immediate needs.
Hence, the correct option is 1.
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