Which of the following ratios are particularly interesting to shortterm creditors?
Correct answer: C. Liquidity Ratios
- A. Profitability Ratios
- B. Long-term Solvency Ratios
- C. Liquidity Ratios
- D. Market Value Ratios
Explanation
Short-term creditors focus on whether a business can meet near-term obligations, which is measured by liquidity ratios such as the current ratio and quick ratio. Solvency ratios mainly assess longer-term financial risk.
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