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Home › CBSE Class 11 (Commerce) › Accountancy › Introduction to Accounting › Creditors look particularly at liquidity, which …

Creditors look particularly at liquidity, which is the firm's ability to

ARaise selling prices
BExpand into new cities
CPay debts when they fall due
DIncrease its share price
Answer & Solution
Correct answer: C. Pay debts when they fall due
Liquidity means ability to pay debts as they become due, which is what lenders want to know.
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