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What is a `weak unit`?
  • a)
    An industry that has been in existence for not less than 3 years and is found at the end of an accounting year to have 70% of its net worth eroded
  • b)
    An industry that has been in existence for not less than 4 years and is found at the end of an accounting year to have 50% of its net worth eroded
  • c)
    An industry that has been in existence for not less than 5 years and is found at the end of an accounting year to have its net worth completely eroded
  • d)
    An industry that has been in existence for not less than 2 years and is found at the end of an accounting year to have 25% of its net worth eroded
Correct answer is option 'C'. Can you explain this answer?
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What is a `weak unit`?a)An industry that has been in existence for no...
Weak unit is also known as 'sick industry'. It is an industry that has been in existence for not less than 5 years and is found at the end of an accounting year to have accumulated losses to such an extent that its net worth is completely eroded.
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What is a `weak unit`?a)An industry that has been in existence for no...
Explanation:
An industry is considered a `weak unit` when it has been in existence for not less than 5 years and is found at the end of an accounting year to have its net worth completely eroded.

Key Points:
- Time in existence: The industry must have been operating for at least 5 years.
- Net worth erosion: The industry's net worth is completely eroded, indicating severe financial distress.
- Significance: This classification helps identify industries that are struggling to sustain themselves financially and may require intervention or support.
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What is a `weak unit`?a)An industry that has been in existence for not less than 3 years and is found at the end of an accounting year to have 70% of its net worth erodedb)An industry that has been in existence for not less than 4 years and is found at the end of an accounting year to have 50% of its net worth erodedc)An industry that has been in existence for not less than 5 years and is found at the end of an accounting year to have its net worth completely erodedd)An industry that has been in existence for not less than 2 years and is found at the end of an accounting year to have 25% of its net worth erodedCorrect answer is option 'C'. Can you explain this answer?
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What is a `weak unit`?a)An industry that has been in existence for not less than 3 years and is found at the end of an accounting year to have 70% of its net worth erodedb)An industry that has been in existence for not less than 4 years and is found at the end of an accounting year to have 50% of its net worth erodedc)An industry that has been in existence for not less than 5 years and is found at the end of an accounting year to have its net worth completely erodedd)An industry that has been in existence for not less than 2 years and is found at the end of an accounting year to have 25% of its net worth erodedCorrect answer is option 'C'. Can you explain this answer? for CAT 2025 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about What is a `weak unit`?a)An industry that has been in existence for not less than 3 years and is found at the end of an accounting year to have 70% of its net worth erodedb)An industry that has been in existence for not less than 4 years and is found at the end of an accounting year to have 50% of its net worth erodedc)An industry that has been in existence for not less than 5 years and is found at the end of an accounting year to have its net worth completely erodedd)An industry that has been in existence for not less than 2 years and is found at the end of an accounting year to have 25% of its net worth erodedCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is a `weak unit`?a)An industry that has been in existence for not less than 3 years and is found at the end of an accounting year to have 70% of its net worth erodedb)An industry that has been in existence for not less than 4 years and is found at the end of an accounting year to have 50% of its net worth erodedc)An industry that has been in existence for not less than 5 years and is found at the end of an accounting year to have its net worth completely erodedd)An industry that has been in existence for not less than 2 years and is found at the end of an accounting year to have 25% of its net worth erodedCorrect answer is option 'C'. Can you explain this answer?.
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