If a Company Has an Altman Z-Score of 3

question 14

Multiple Choice

If a company has an Altman Z-score of 3.1, the company would be classified in the __________.

• A) distress zone, or at significant risk of bankruptcy
• B) gray zone, or at risk of bankruptcy
• C) safe zone, not currently at risk of bankruptcy
• D) green zone, no risk of bankruptcy

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Definitions:

Autonomic Arousal

Refers to physiological responses not under voluntary control, such as increased heart rate or sweating, often in reaction to stress or stimuli.

Acquired Motives

Motives that are learned throughout life, such as achievement, affiliation, and power, contrasting with biological motives.

Learning

The acquisition of knowledge or skills through experience, study, or by being taught.

Food And Water

Essential nutrients and hydration necessary for survival, growth, and health.