Below Are Various States of Financial Distres S

question 9

Multiple Choice

Below are various states of financial distres s:
1) defaulting on a principal payment on debt
2) restructuring debt
3) liquidating a firm
4) filing for bankruptcy
5) failing to make a required interest payment on time
What is the order of increasing gravity that analysts typically consider when assessing credit risk and bankruptcy risk according to a continuum of financial distress?

• A) 5, 1, 2, 3, 4
• B) 5, 2, 1, 4, 3
• C) 1, 5, 2, 4, 3
• D) 1, 5, 2, 3, 4

---

Definitions:

Tumor

A cluster of tissue that becomes unusual because cells multiply excessively or avoid programmed cell death.

Glioblastoma

A highly aggressive and the most common primary malignant brain tumor in adults, characterized by rapid growth and invasion into adjacent brain tissue.

Least Differentiated

Refers to cells or tissues that have the lowest level of specialization, often found in early developmental stages or certain types of cancer, where cells lose their specialized functions.

Differentiated

The process by which cells or tissues undergo a change toward a more specialized form or function, often in the context of cell biology and cancer research.