a - lenders
Creditors.
Lenders does.
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.
Networth
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.
Creditors.
Lenders does.
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.
bondholders.
bondholders.
Networth
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 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.
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.
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.
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.
_____ measure how effectively a firm manages assets to generate revenue.