Which Factor Listed Is NOT a Good Indicator of Potential

question 30

Multiple Choice

Which factor listed is NOT a good indicator of potential financial failure?

• A) The client is constantly short of cash and working capital.
• B) The client has had increasing net losses for several years.
• C) The client's retained earnings were reduced by half as a result of a large dividend payout.
• D) The client relies heavily on debt financing, especially by financing permanent assets with short-term loans.

---

Definitions:

Grammatical Aspects

Language components that convey how an action, event, or state, denoted by a verb, extends over time.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Nightly News

A daily evening broadcast that summarizes the day's events, providing viewers with updates on local, national, and international news stories.

Semantics

The branch of linguistics and logic concerned with meaning, including the ways in which words and sentences relate to each other and to the objects they refer to.