The Text Discusses Various Factors That Relate to the Risk

question 23

Multiple Choice

The text discusses various factors that relate to the risk of a company facing financial distress or bankruptcy. Which of the following might be in indicator of risk, based on the discussion in the text?

• A) The company has a high inventory turnover.
• B) Most of the company's assets are fixed assets and intangible assets that would take considerable time to sell.
• C) The company's sales are relatively stable over time.
• D) The company is large, with a variety of different product lines.

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Definitions:

Church Of England

The primary state church in England, a Christian church characterized by a distinctive Anglican faith and identity, with the monarch serving as its supreme governor.

Massasoit

A leader of the Wampanoag Confederacy who played a key role in the early interaction between Native American tribes and the Pilgrims in the 17th century.

Wampanoag Chief

A leader of the Wampanoag, a Native American tribe from the northeastern United States, known historically for their involvement in early interactions with European settlers, including the first Thanksgiving.

Imported Goods

Items brought into a country from abroad for sale or trade.