Financial Distress Can Be Particularly Dangerous to Firms That Produce

Financial distress can be particularly dangerous to firms that produce R&D-intensive goods and services because:

A) Most of the expenses incurred in production are sunk costs.
B) It is unlikely to be able to fund future R&D expenditures if it is in financial distress meaning that it is probably not going to be able to produce cutting-edge products in the future.
C) Intangible assets such as patents and trademarks are unlikely to survive the bankruptcy or financial distress intact.
D) all of the above
E) both (a) and (b)