Financial distress can be best described by which of the following situations in which the firm is forced to take corrective action?
A) Cash payments are delayed to creditors.
B) The market value of the stock declines by 10%.
C) The firm's operating cash flow is insufficient to pay current obligations.
D) Cash distributions are eliminated because the board of directors considers the surplus account to be low.
E) None of these.
Correct Answer:
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