If a Company Reports a Net Loss It

question 16

Multiple Choice

If a company reports a net loss it

• A) may still have a net increase in cash.
• B) will not be able to pay cash dividends.
• C) will not be able to get a loan.
• D) will not be able to make capital expenditures.

---

Definitions:

Biological Rhythm

Natural cycles of physical, emotional, or intellectual changes that the body goes through, such as circadian rhythms.

Fluctuation

An irregular rising and falling in number or amount; a variation.

Expectations

Beliefs or anticipations about the future, often based on experience, knowledge, or perceived trends.

Illicit Drug

A substance whose production, sale, or use is prohibited by law, often associated with addiction and illegal trade.