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Creditors Trade - Measuring Business Performance
Creditors Trade
These are interested in the company's capability to meet their short-term obligations as and whenever they fall due. For this purpose they will require ratios such like:
a) Liquidity ratio - a qualitative measure of company's liquidity position measured with acid test ratio.
b) Current ratio - that is a measure of company's quantity of current assets against recent liabilities.
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evaluate the source of finance for a business project
Political Factors and Technological Factors - Investment Decisions i) Political factors - Under conditions of political uncertainty, that decisions cannot be completed as it
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