McqMate
| Q. |
Who are the creditors of a Corporation? |
| A. | Bond holders |
| B. | Stock holders |
| C. | Both Bond and Stock holders |
| D. | Holders of preferred stock |
| Answer» C. Both Bond and Stock holders | |
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Explanation: A creditor is a party (e.g. person, organization, company, or government) that has a claim to the services of a second party. It is a person or institution to whom money is owed. The second party is frequently called a debtor or borrower. An incorporated entity is a separate legal entity that has been incorporated through a legislative or registration process established through legislation. Both bond holders and stock holders are creditors of a corporation. |
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