Which term refers to suppliers and financial institutions that lend money to companies?

• A. Investors
• B. Creditors
• C. Lenders
• D. Donors

Answer: (C)

The correct term that refers to suppliers and financial institutions that lend money to companies is lenders. Lenders are entities or individuals that provide loans to businesses with the expectation of being repaid, typically with interest. They play a crucial role in business financing, as they provide the necessary capital that companies need to grow, expand operations, or manage cash flow.

In a business context, lenders may include banks, credit unions, and various financial institutions that offer credit facilities. They assess the creditworthiness of borrowers before issuing loans, ensuring that the business has the ability to repay the borrowed amount.

While investors also provide capital, they usually do so in exchange for equity in the company rather than as a loan that must be repaid. Creditors can refer to anyone owed money, which may include suppliers offering trade credit, but they don't specifically focus on lending money. Donors typically give funds without expecting repayment, often in the context of non-profit organizations. Thus, the term lenders specifically encapsulates those who provide loans to businesses, making it the most accurate choice in this context.