When Considering Financial Difficulties, Which of the Following Statements Constitutes

question 27

Multiple Choice

When considering financial difficulties, which of the following statements constitutes a forcing event?

• A)The business has a loss for one quarter.
• B)A lender demands the removal of an owner/manager before lending the necessary funds.
• C)The business does not make a substantial profit for the first year of business.
• D)The business has record losses over a holiday season.

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Definitions:

TRIN Statistic

A technical analysis indicator known as the TRading INdex (TRIN), which compares the number of advancing and declining stocks to their respective volume, aiming to gauge overall market sentiment.

Bearish Signal

An indication in technical analysis or market behavior suggesting that the price of an asset is likely to decline.

Bullish Signal

An indicator suggesting that the price of an asset is likely to increase, often leading investors to buy or hold positions.

Relative Strength

A momentum investing technique comparing the performance of a stock or asset to that of a broader market index to gauge its strength.