Bankruptcy is a process that depends on a variety of structural, fiscal, and human variables. These variables are different at every company. Ttherefore, the pattern of companies declaring bankruptcy should be random. Yet tax records from 2010 demonstrate a pattern: a large number of companies throughout the United States declared bankruptcy at the same time. Which of the following, if true, forms the best basis for at least a partial explanation for the pattern of bankruptcy shown by the tax records?
A: Certain financial problems affect only some types of businesses with particular sets of characteristics unique to their industry.
B: Many companies go bankrupt because the economies of the states in which they are located force them to go into gradual but increasing debt.
C: Patterns of bankruptcy emerge when widespread economic issues affect numerous companies.
D: Companies without franchises in more than one country are more likely to declare bankruptcy.
Choose A, B, C or D as your solution.
C