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Question
ASSERTION: Creditors are not stakeholders.
REASONING: A creditor is an individual, institution, or entity to whom money, goods, or services are owed by another person or business.
Options
A is true, and R is the correct explanation for A.
A is true, and R is not the correct explanation for A.
A is true, but R is false.
A is false, but R is true.
MCQ
Assertion and Reasoning
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Solution
A is false, but R is true.
Explanation:
The assertion is false because creditors are external stakeholders with a financial stake in a firm’s solvency and repayment capacity. The reasoning correctly defines a creditor, so R is true, but it does not make A true.
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