Question

Individuals or institutions provide money as a loan to commercial organisations and charge interest on it.

1. Identify the above stakeholders.
2. State any four expectations that the above may have from a business enterprise.

Answer 1

1. Creditors, which are individuals or institutions that lend money to the business (e.g., banks, debenture‑holders, other lenders).
2. The four expectations that the Creditors may have from a business enterprise are:
   1. Safety of the capital contributed by them.
   2. A fair and regular return on their loan (i.e., payment of interest).
   3. Return (repayment) of the loan on time according to agreed terms.
   4. A sound public image/creditworthiness of the company (so they can feel confident about lending).