Question

A company is said to be 'Sick' when the accumulated loss at  the end of any financial year leads to erosion of_______percent of its net wealth.

Options

• 100%

• 75%

• 50%

• 25%

Answer 1

A company is said to be 'Sick' when the accumulated loss at the end of any financial year leads to erosion of 100% percent of its net wealth.

Explanation:

Industrial sickness is defined in India as "an industrial company (being a company registered for not less than five years) which has, at the end of any financial year,  accumulated losses equal to, or exceeding its entire net worth and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year".