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16y ago

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Related Questions

Who has the first claim to the profits and assets of a firm?

Creditors.


Does private financiers have first claim to profits or assets of a firm?

Lenders does.


Has the lowest claim on the assets and cash flow of the firm?

Common shareholders have the lowest claim on the assets of assets of a firm. They have only a residual claim on the assets and are far below the preferred stock classification.


In the event of a firm's dissolution the first claim on its assets belongs to whom?

bondholders.


In the event of a firm's dissolution the firm claim on its assets belong to?

bondholders.


A claim against a firm's assets by a creditor?

Networth


The goal of the firm should be?

A firm should focus on providing value to the clients first before making profits. Firms that aim to keep the clients happy will often make more profits.


In the event of firm dissolution the first claims on its assets belongs to?

In the event of firm dissolution, the first claims on its assets belong to secured creditors. These are lenders or creditors who hold collateral against their loans, ensuring they are paid first. Following secured creditors, the order of claims typically proceeds to unsecured creditors, and finally, any remaining assets are distributed to the owners or shareholders of the firm.


Explain what is meant by The ownership of the firm is residual in nature?

Common shareholders receive what is left over after all other claims on the firm have been satisfied. Because they are residual claims, common stocks have no stated maturity. In other words, unlike corporate bonds, common stocks do not have a date on which the corporation must buy them back. The shareholder receives these residual benefits in the form of dividends, capital gains or both.


What is the liquidity position of the firm?

liquidity position of a firm is the amount of liquid assets ,that is, cash ,bank balance and those assets which can be converted into cash as and when required by the firm which is owned by the firm currently.


How are the current assets of each firm financed?

Current assets of a firm are typically financed through a combination of short-term liabilities and long-term equity. Short-term liabilities, such as accounts payable and short-term loans, provide immediate funds for operational needs. Additionally, retained earnings from past profits can also contribute to financing current assets. The specific mix of these financing sources can vary based on the firm's financial strategy, industry, and market conditions.


What revenue measures how effectively a firm manages assets to generate revenue?

_____ measure how effectively a firm manages assets to generate revenue.