Market-specific reasons for financial distress include all of the following EXCEPT:
A) high interest rates.
B) high unemployment.
C) economic recession.
D) volatility in earnings.

Question

Quizplus · Accepted Answer

Volatility in earnings is not a market-specific reason for financial distress but rather a company-specific factor. Market-specific reasons typically relate to broader economic conditions such as high interest rates, high unemployment, and economic recessions, which affect multiple companies and industries.

Market-Specific Reasons for Financial Distress Include All of the Following