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What is the relationship between shareholders and creditors？

幫考網(wǎng)校2020-10-10 18:50:03

Shareholders and creditors have a different relationship with a company. Shareholders are the owners of the company, and they invest their money in the company by buying its shares. They have a stake in the company's profits and losses and can vote on important decisions such as the election of the board of directors.

On the other hand, creditors are the lenders who provide loans and credit to the company. They expect to be paid back with interest. Creditors do not have any ownership in the company, but they have a legal claim on the company's assets in case of default.

In summary, shareholders have an equity stake in the company, while creditors have a debt stake. Their relationship with the company is different, but both are important for the company's success.