Which of the Following Is Not an Example of a Mitigating

question 41

Multiple Choice

Which of the following is not an example of a mitigating factor that reduces the risk that the going concern assumption may be in doubt?

• A) The ability to raise additional funds via borrowings
• B) A letter of guarantee from a parent company
• C) The ability to sell an unprofitable segment of the business
• D) Significant rapid increase in competition

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Definitions:

Shareholders' Resolution

A formal decision or expression of opinion passed by the shareholders of a company, often related to its management or policies.

Coffee Import Business

The business activity of bringing coffee from foreign countries into one's own country for sale and distribution.

Indoor Management Rule

A legal principle allowing outsiders dealing with a company to assume that internal company rules have been properly followed.

Corporate Agents

Individuals or entities authorized to act on behalf of a corporation, making decisions and entering into agreements.