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The Text Discusses Various Factors That Relate to the Risk

Question 23

Multiple Choice

The text discusses various factors that relate to the risk of a company facing financial distress or bankruptcy. Which of the following might be in indicator of risk, based on the discussion in the text?


A) The company has a high inventory turnover.
B) Most of the company's assets are fixed assets and intangible assets that would take considerable time to sell.
C) The company's sales are relatively stable over time.
D) The company is large, with a variety of different product lines.

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