Which of the Following Is a 'Red Flag' Suggesting That

question 8

Multiple Choice

Which of the following is a 'red flag' suggesting that a company may be in trouble?

• A)A reduction in inventories
• B)An increase in dividend payout
• C)A decline in days in inventory
• D)Cash flow from operations lower than profit

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Definitions:

Supply

The total amount of goods or services available for purchase in a market, or the provision of necessary resources.

Manipulate Demand

Strategies or actions taken to influence or control the market demand for a product or service.

Price Cuts

Reductions in the selling price of goods or services, often used as a strategic business move to increase demand or competitiveness.