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 appears to have 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.Serious injuries were allegedly caused by the company's infant high chairs overturning.The television news report is an example of financial information that is

Question

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The television news report is relevant financial information because it directly relates to the company's financial position and potential risks to its operations. The lawsuit and potential damages could have a significant impact on the company's financial position and ability to repay the loan, making this information important for the loan officer to consider.

High Point Furniture Company Manufactures Furniture