Which non-financial factor in the following list is most likely to be a cause of a going-concern problem?
A)Hiring a new CEO.
B)Loss of a key patent.
C)Announcing a new share issue.
D)Replacing an old product line.

Question

Quizplus · Accepted Answer

Losing a key patent could lead to a loss of competitive advantage and revenue, which could ultimately lead to a going-concern problem. The other options (hiring a new CEO, announcing a new share issue, replacing an old product line) may have financial implications, but they are not as directly linked to the ability of the company to continue operating as losing a key patent.

Which Non-Financial Factor in the Following List Is Most Likely