Which of the following industries is likely to have the lowest costs of financial distress?

Question

Quizplus · Accepted Answer

Electric utilities are likely to have the lowest costs of financial distress because their assets are typically long-lived and essential, providing a steady income stream even during periods of financial instability. In contrast, airlines, computer software, and biotechnology companies have assets that are more vulnerable to market changes and likely to become quickly obsolete, making it more difficult to recover from financial distress.

Which of the Following Industries Is Likely to Have the Lowest