Which Events May Indicate Going-Concern Problems

question 93

Multiple Choice

Which events may indicate going-concern problems?

• A)An increase in research and development costs.
• B)A decrease in barriers to expansion.
• C)Additions of patents.
• D)Loss of a key supplier or customer.

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Definitions:

Use of Threats

A negotiation or influence strategy involving the signalling of intent to inflict harm or loss on another party if one's demands are not met.

Effective

Producing a decided, decisive, or desired effect.

Legitimate Power

A form of authority based on formal position or role within an organization or society, recognized and accepted by others as rightful.

Reactivity

The tendency of a person or system to react to stimuli or changes in the environment.