Which of the Following Is Not an Example of a Mitigating

question 43

Multiple Choice

Which of the following is not an example of a mitigating factor that reducthe 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:

Reinforcement

In psychology, a process in which a behavior is strengthened or increased, either by a positive stimulus (reward) or removal of a negative one.

Delivered

The act of bringing something to a destination or achieving a desired result, especially as promised or expected.

Schedule

A plan that lists times at which specific events are intended to occur, often used to organize work, meetings, or travel.

Plan

A detailed proposal for doing or achieving something, typically involving the setting of goals, defining of steps, and allocation of resources.