Which of the Following Is the Type of Financial Distress

question 102

Multiple Choice

Which of the following is the type of financial distress in which a firm's operating cash flows are not sufficient to pay its liabilities as they come due?

• A) business failure
• B) economic failure
• C) technical insolvency
• D) business extension

---

Definitions:

Oil

A viscous liquid derived from petroleum, used as fuel and in the manufacture of various goods.

Natural Gas

An energy-producing fossil fuel that predominantly contains methane, utilized for heating, cooking, and generating electricity.

Net Energy Ratio

A metric that compares the amount of energy produced to the amount of energy used to produce it.

Natural Gas

A fossil fuel composed primarily of methane, used for heating, electricity generation, and as a fuel for vehicles.