ASSERTION: Creditors are not stakeholders. REASONING: A creditor is an individual, institution, or entity to whom money, goods, or services are owed by another person or business.

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A is false, but R is true. Explanation: The assertion is false because creditors are external stakeholders with a financial stake in a firm’s solvency and repayment capacity. The reasoning correctly defines a creditor, so R is true, but it does not make A true.

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