Michael Has a Sense That His Business Isn't Doing as Well

question 23

Multiple Choice

Michael has a sense that his business isn't doing as well as it should but he isn't sure what to look for to confirm his suspicions. Which one of the following could be a signal that the business is in trouble?

• A) difficulty finding skilled candidates
• B) tolerance of work incompetence
• C) more work than the business can handle
• D) long lead times for new orders

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Definitions:

Exempted Offerings

Securities offerings that are released from the registration requirements with the SEC, generally due to their limited nature.

Shareholder Proposals

Suggestions or demands made by shareholders for consideration and action by the company's board of directors.

Rule 10b-5

A regulation enacted by the Securities and Exchange Commission dealing with fraud and manipulation in the securities markets.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.