Which of the Following Has ASIC Identified as a Practice

question 20

Multiple Choice

Which of the following has ASIC identified as a practice that indicates risk of corporate insolvency?

• A) Disorganised internal accounting procedures
• B) Judgement debts
• C) Loss of key management personnel
• D) All of the above

---

Definitions:

Positive Statement

An objective statement based on facts that can be tested and validated, used in contrast to normative statements which express opinions or what ought to be.

Normative Statements

Statements that express opinions, desires, or judgments about what should be, and do not make factual or objective claims.

Positive Statements

Objective statements that can be tested, amended, or rejected by referring to the available evidence.

Normative Statement

A value judgment about what ought to be, expressing opinions or assertions that cannot be tested or verified.