Question

Which one of the following statements is correct for a corporation with a negative net income in both the present and the last fiscal year?

A) The corporation is financially stable.
B) The corporation is experiencing financial growth.
C) The corporation is facing financial challenges.
D) The corporation has no impact on the market.

Answer 1

The correct statement for a corporation with a negative net income in both the present and the last fiscal year is that the corporation is facing financial challenges.

Step-by-step explanation:

For a corporation with a negative net income in both the present and the last fiscal year, the correct statement is C) The corporation is facing financial challenges. Negative net income indicates that the corporation's expenses outweigh its revenue, resulting in a loss. This suggests financial difficulties as the company is not generating enough profit to cover its costs.