Final answer:
True. Creditors are mainly interested in assessing two things about a company: the company's ability to generate enough cash flow to repay the borrowed money and the company's creditworthiness and ability to manage its debt obligations.
Step-by-step explanation:
True, creditors are mainly interested in assessing two things about a company. First, they are interested in the company's ability to generate enough cash flow to repay the borrowed money. Creditors are mainly interested in assessing two things about a company: the company's ability to generate enough cash flow to repay the borrowed money and the company's creditworthiness and ability to manage its debt obligations.
This is usually evaluated by looking at the company's profitability and cash flow statement. Second, creditors are interested in the company's creditworthiness and its ability to manage its debt obligations. This is assessed by reviewing the company's credit history and financial ratios such as debt-to-equity ratio and interest coverage ratio.