Mullins, Inc. manufactures furniture. Mullins has given you its most recent annual report in an effort to obtain a sizeable loan. The company is very profitable and appears to have a strong financial position. However, based on a news report you saw on television last night, you are aware that Mullins is a defendant in a class action lawsuit related to defective products. Serious injuries were allegedly caused by Mullins' infant high chairs overturning. The television news report is an example of financial information that is:

Question

Quizplus · Accepted Answer

The news report about the class action lawsuit related to defective products is relevant financial information because it is directly related to the company's financial position and could have significant impact on its future profits and liabilities.