Explain the management’s responsibility towards the creditors in bri

1.	Explain the management’s responsibility towards the creditors in brief.
Answer» The creditors or investors or lenders play an important role in meeting the financial requirements of business. Therefore, the management has to fulfill the following obligations towards them : 1. To make productive use of debt money. 2. To keep fair conditions of interest and principal amount while taking loans. 3. To make regular and timely payment of interest and the principal amount borrowed. 4. To keep custody of mortgaged assets. 5. To make available the required information to the creditors.

Explain the management’s responsibility towards the creditors in brief.

Answer»

The creditors or investors or lenders play an important role in meeting the financial requirements of business.

Therefore, the management has to fulfill the following obligations towards them :

1. To make productive use of debt money.

2. To keep fair conditions of interest and principal amount while taking loans.

3. To make regular and timely payment of interest and the principal amount borrowed.

4. To keep custody of mortgaged assets.

5. To make available the required information to the creditors.