Explore BrainMass

Characteristics of types of stakeholders

Are short-term creditors, long-term creditors, and stockholders interested primarily in the same characteristics of a company? Explain. (300 words)

Solution Preview

All three types of stakeholders would want to have a business relationship with companies which

1. Are profitable
2. Have increasing sales year over year
3. Are in a growing industry
4. Have global plans or current exposure

In addition to those general attributes, short-term creditors would look at
a. Liquidity including cash position
b. Working capital ratio
c. Quick ratio
d. Cash ratio
e. High inventory turns

Short-term creditors are usually unsecured with no collateral for their accounts receivable. In extending credit, ...

Solution Summary

The solution lists general characteristics that all stakeholders would be interested in followed by specific attributes for each of the three categories of stakeholders. For each group, there are 4 or 5 particular attributes and then a paragraph explaining the characteristics and the type of investment vehicles used.