High Point Furniture Company manufactures furniture.The company has applied for a sizeable loan to expand its operations.Based on the company's annual report,the loan officer concludes that High Point is very profitable and has a strong financial position.However,watching the nightly news on television that evening,the banker discovers that High Point is a defendant in a class action lawsuit related to defective products.It is being alleged that serious injuries were caused by the company's infant high chairs overturning.What kind of financial information is the television news report an example of?

Question

Quizplus · Accepted Answer

The television news report is an example of relevant financial information as it pertains to a legal issue that could impact the company's financial position and ability to repay the loan.

High Point Furniture Company Manufactures Furniture