What Is a Contingency

question 152

Multiple Choice

What is a contingency?

• A) An existing situation where certainty exists as to a gain or loss that will be resolved when one or more future events occur or fail to occur.
• B) An existing situation where uncertainty exists as to possible loss that will be resolved when one or more future events occur.
• C) An existing situation where uncertainty exists as to possible gain or loss that will not be resolved in the foreseeable future.
• D) An existing situation where uncertainty exists as to possible gain or loss that will be resolved when one or more future events occur or fail to occur.

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Definitions:

Measuring Competitiveness

The evaluation of a company's ability to compete in the market, based on factors like price, quality, and innovation.

Market Ratios

Financial metrics used to evaluate the market value of a company’s shares, including price-to-earnings and market-to-book ratios.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity used to finance its overall operations and growth.

Quality

The degree of excellence of a product or service, reflecting its ability to satisfy customer needs and expectations.