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Shareholders are the owners of a company, holding equity stakes that represent their claim on the company's assets and earnings. Creditors, on the other hand, are entities or individuals that lend money or extend credit to the company, expecting repayment with interest. While shareholders benefit from the company's success through dividends and capital appreciation, creditors prioritize the repayment of their loans and are typically paid before shareholders in the event of liquidation. This creates a dynamic where shareholders have a residual claim on profits, while creditors have a more secure, contractual claim.
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What is the relationship between shareholders with company or corporation?
Shareholders are the people who invest from in the corporation by buying stock.
What happens to shareholders when a company goes bankrupt?
When a company goes bankrupt, shareholders may lose the value of their investment as the company's assets are used to pay off debts to creditors. Shareholders are typically last in line to receive any remaining funds after creditors and bondholders are paid.
Who are blockbuster key stakeholders?
Blockbuster's key stakeholders include shareholders, employees, customers, suppliers, and creditors. Shareholders are concerned with profitability and stock performance, while employees seek job security and fair wages. Customers focus on product availability and service quality, and suppliers are interested in maintaining a steady business relationship. Creditors monitor financial health to ensure timely repayment of debts.
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.
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.
What happens to shareholders when a company goes bankrupt?
When a company goes bankrupt, shareholders may lose the value of their investment as the company's assets are used to pay off debts to creditors. Shareholders are typically last in line to receive any remaining funds after creditors and bondholders are paid.
The users of annual report?
shareholders creditors employees customers financial analysts
What are the solutions to the conflicts between creditors and shareholders?
Solutions to conflicts between creditors and shareholders often involve implementing clear contractual agreements that define the rights and priorities of each party. Establishing a balanced capital structure can help mitigate risks, ensuring that creditors are adequately compensated while still allowing for potential returns to shareholders. Additionally, transparent communication and regular financial reporting can foster trust and collaboration, enabling both parties to work together towards the company's long-term success. Mediation or negotiation mechanisms can also be employed to resolve disputes amicably.
Who are blockbuster key stakeholders?
Blockbuster's key stakeholders include shareholders, employees, customers, suppliers, and creditors. Shareholders are concerned with profitability and stock performance, while employees seek job security and fair wages. Customers focus on product availability and service quality, and suppliers are interested in maintaining a steady business relationship. Creditors monitor financial health to ensure timely repayment of debts.
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
