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

question 21

Multiple Choice

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

• A) A decline in days in inventory
• B) An increase in dividend payout
• C) A buildup of inventories
• D) Cash flow from operations is higher than net income

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Definitions:

Industrial Economy

An economy characterized by the mass production of goods in factories, significant technological advancement, and the predominance of the manufacturing and service sectors.

Labor Unions

Organizations representing workers in various industries to negotiate wages, working conditions, and benefits on their behalf.

Social Equality

Social equality refers to a state of affairs in which all individuals within a society have the same status in certain respects, including civil rights, freedom of speech, property rights, and equal access to social goods and services.

Northern State

In the context of the American Civil War, a Northern state refers to any of the states that were part of the Union, opposing the seceding Confederate Southern states.