Question

Expectations of creditors (stake holder in commercial organisation )​

Answer 1

Answer:

Source one is funds provided by long term creditors like debentures, finance institutions and banks. These have fixed interests or returns hence no risk sharing. ADVERTISEMENTS: The second long term funds come from shareholders name preference and equity share holders.

Explanation:

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Answer 2

Answer:

Expectations of creditors are :-

1. safety of the loans given by them to the enterprise.
2. regular payment of interest at the specified times.
3. return of loans on the expiry of the specified time period.
4. accurate and upto date information about the financial health of the enterprise.
5. security in the form of mortgage of assets or personal guarantee by owners of the enterprise.