If a Company Reports a Net Loss, It

question 82

Multiple Choice

If a company reports a net loss, it

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

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Definitions:

Class Action

A legal procedure that allows many individuals with similar grievances to sue a defendant as a group.

Shareholder

An individual or institution that owns one or more shares of stock in a public or private corporation, giving them a right to a portion of the company's profits and a degree of control over its governance.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, borrowing money, suing or being sued.

Demand

A strong request for something to be given or done, often under the threat of consequences for non-compliance.