Which Non-Financial Factor in the Following List Is Most Likely

question 34

Multiple Choice

Which non-financial factor in the following list is most likely to be a cause of a going-concern problem?

• A)Hiring a new CEO.
• B)Loss of a key patent.
• C)Announcing a new share issue.
• D)Replacing an old product line.

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Definitions:

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Expenditure

The total amount of money spent by an individual, firm, or government on goods and services.

Innovation

The process of creating new methods, products, or ideas that bring about significant improvements or changes.