A firm whose primary business is in a line of regional grocery stores would be most likely to have to include which of the following facts,if TRUE,in the firm's management discussion and analysis (MD&A)?
A)that a large number of funds were allocated to advertising to increase awareness of the firm's brand in new areas it had expanded into this year
B)that some senior members of the management team have retired in this financial year
C)that the company has lost a class action suit brought against the firm by its employees and is expected to have to pay a large amount of damages
D)that the firm has plans to expand into the organic food business in the next financial year by purchasing several small organic food retailers
E)that food prices have increased,increasing the firm's costs

Question

Quizplus · Accepted Answer

The MD&A section is meant to provide insights into the financial condition and operations of the company. A significant legal loss with expected large damages would have a material impact on the firm's financial position and must be disclosed.

A Firm Whose Primary Business Is in a Line of Regional