What type of income or profit does an investor expect to receive in exchange for providing financial resources? What time of income does a creditor expect from providing financial resources to an organization or business?

What type of income or profit does an investor expect to receive in exchange for providing financial resources? What time of income does a creditor expect from providing financial resources to an organization or business?



Investors expect a distribution of the business's profits as a return on their financial investment (capital allocation).

Creditors lend financial resources to businesses and receive interest as a return or profit on the loan.


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