Which one of the following best describes the term andlsquo;Zombie Companyandrsquo;?a)A company that operates entirely online without any physical presence.b)A company with strong financial health and minimal dependence on bank financing.c)A company that has no active business operations, assets, or significant operations.d)A company whose revenue only covers fixed routine and operating costs.Correct answer is option 'D'. Can you explain this answer?

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Which one of the following best describes the term ‘Zombie Company’?

a)
A company that operates entirely online without any physical presence.
b)
A company with strong financial health and minimal dependence on bank financing.
c)
A company that has no active business operations, assets, or significant operations.
d)
A company whose revenue only covers fixed routine and operating costs.

Correct answer is option 'D'. Can you explain this answer?

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Daily Current Affairs MCQ- June 8, 2024

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Which one of the following best describes the term ‘Zombie Compa...

An Associated Press analysis found the number of publicly-traded “zombie” companies has soared to nearly 7,000 around the world, including 2,000 in the United States.

About Zombie Company:

A zombie company is a corporate entity with very limited cash flows, only sufficient to pay the interest on the debt borrowed but not the principal amount of the loan.
The revenue generated by the business operations only covers the fixed routine and operating costs (wages, rent, interest payments on debt, for example).
These companies, often referred to as the "living dead" or "zombie stocks," have no excess capital to invest in growth, innovation, or significant improvements.
They are highly dependent on banks for financing.
They are typically subject to higher borrowing costs and may be one just event—market disruption or a poor quarter performance—away from insolvency or a bailout.
They are “uncompetitive survivors” and contribute to lower productivity in the global economy.
These companies can pose a risk to the broader economy by tying up resources that could be more effectively used by healthier, more innovative firms.

Hence option d is the correct answer.

Answered by Notes Wala · View profile

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Which one of the following best describes the term ‘Zombie Company’?a)A company that operates entirely online without any physical presence.b)A company with strong financial health and minimal dependence on bank financing.c)A company that has no active business operations, assets, or significant operations.d)A company whose revenue only covers fixed routine and operating costs.Correct answer is option 'D'. Can you explain this answer?

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Which one of the following best describes the term ‘Zombie Company’?a)A company that operates entirely online without any physical presence.b)A company with strong financial health and minimal dependence on bank financing.c)A company that has no active business operations, assets, or significant operations.d)A company whose revenue only covers fixed routine and operating costs.Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which one of the following best describes the term ‘Zombie Company’?a)A company that operates entirely online without any physical presence.b)A company with strong financial health and minimal dependence on bank financing.c)A company that has no active business operations, assets, or significant operations.d)A company whose revenue only covers fixed routine and operating costs.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following best describes the term ‘Zombie Company’?a)A company that operates entirely online without any physical presence.b)A company with strong financial health and minimal dependence on bank financing.c)A company that has no active business operations, assets, or significant operations.d)A company whose revenue only covers fixed routine and operating costs.Correct answer is option 'D'. Can you explain this answer?.

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