answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What is the relationship between shareholders and creditors?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Agency conflict between shareholders and creditors?

if the creditors are not paid in time.


What is the relationship between shareholders with company or corporation?

Shareholders are the people who invest from in the corporation by buying stock.


Liquidations is the process of what?

Creditors liquidate assets to try and get as much of the money owed to them as possible. They have first priority to whatever is sold off. After creditors are paid, the shareholders get whatever is left with preferred shareholders having preference over common shareholders.


What is financial gearing?

It is the relationship between shareholders equity and fixed interest debt.


The users of annual report?

shareholders creditors employees customers financial analysts


What is the relationship between shareholders directors and management in a privately held company or corporation?

only boss and servent.


Explain the relationship a CEO has to a company's shareholders?

i think that the CEO works for the shareholders.


What is liquidation in business?

Liquidation in business is when the business is closing or bankrupt, and assets are sold to pay creditors. Any left over money after creditors are paid is distributed among shareholders.


What are the defining features of shares?

Here are the defining characteristics of shares:decision-making and voting rights - owning shares of stock gives certain rightslimited liability for shareholders - ordinary shareholders are not personally liable for the debt of a company in the event of bankruptcyloss absorption for other investors (i.e. debt) and creditors - in the event of a liquidation, shareholders only get back their money if there is anything left over after creditors have been settled


Importance of accounting information to government?

shareholders,creditors,suppliers,managers,investors,public and customers need accounting information for?


How might creditors use this information that contained in financial statements?

To improve the company's performance in other to maximize shareholders wealth


Stakeholders that would be interested in an audit report?

Shareholders of the company, the directors of the company, the accountant of the company and future investors or creditors