A "Red Flag" on a Financial Statement Means

question 40

Multiple Choice

A "red flag" on a financial statement means:

• A)a potential financial trouble.
• B)a potential irregularity.
• C)a company has claimed bankruptcy.
• D)A and B.

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Definitions:

Division A

A segment or branch of a company that operates independently with its own set of management and objectives but is still legally tied to the parent corporation.

Division B

Generally refers to a specific unit or section within a larger organization, allocated for managing a particular set of tasks or responsibilities.

CAPM

The Capital Asset Pricing Model (CAPM) is a financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Flotation Costs

Expenses incurred by a company in issuing new securities, including underwriting, legal, registration, and printing fees.