Which of the Following Is True of Altman's Z-Score Boundaries

question 28

Multiple Choice

Which of the following is true of Altman's Z-Score Boundaries?

• A) If a publicly traded non-manufacturing firm has a Z-score of 1.81, it predicts bankruptcy.
• B) If a publicly traded manufacturing firm has a Z-score of 2.60, it indicates non-bankruptcy.
• C) If a publicly traded manufacturing firm has a Z-score of 1.42, the firm is in the zone of ignorance.
• D) The zone of ignorance for privately held manufacturing firms is 1.23 to 2.90.

---

Definitions:

Liaison Role

A function in which an individual acts as an intermediary or connector between different departments, organizations, or groups to facilitate communication and coordination.

Decentralization

The distribution of decision-making power and authority away from a central authority to more local or individual actors within an organization or system.

Standardization of Skills

The process of establishing and promoting certain skills as norms or requirements, ensuring a consistent skill set across individuals in a domain.

Standardization of Outputs

The process of making the products, services, or results produced by a system or organization uniform in quality and specification.