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:

Exporting Goods

The act of sending goods or services produced in one country to another country for sale or trade.

U.S. Companies

Businesses that are registered, operate, or are headquartered in the United States.

Business Failure

The cessation of operations and the closing of a business due to its inability to make a profit or cover its expenses, leading to financial losses for owners and investors.

Business Termination

When a business ceases operation for any reason.