Which One of the Following Is a Direct,rather Than an Indirect,cost

question 26

Multiple Choice

Which one of the following is a direct,rather than an indirect,cost of financial distress?

• A)Key employee leaving for another job due to concerns over job security given the company's financial status
• B)Loss of a key supplier due to late payments to that supplier
• C)Fees paid to financial advisors related to bankruptcy matters
• D)Loss of customers due to concerns the company will close
• E)Money spent to send a mailing to customers dispelling any and all financial distress concerns about the company

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Definitions:

Act of Omission

Failure to take an action that is legally or morally required, leading to harm or injury.

Criminal Act

An action that constitutes an offense and is punishable by law.

Misdemeanor

A criminal offense that is less serious than a felony and is usually punishable by fines, penalties, or a jail term of less than one year.

Public Intoxication

A legal charge applied to individuals found in public places while under the influence of alcohol or drugs to a degree that may endanger themselves or others.