The red-flag that is generally identified when vendors with invoices for the same amount on the same day are found is billing more than once for the same purchase.
- A red flag is a warning sign that suggests a potential threat, whether real or imagined, and that needs to be looked into further.
- A red flag in investing is a risk to a company's share price, which can be seen in the company's financials, in news headlines, or on social media.
- But what might be a warning sign for one investor might not be for another.
- Depending on the research approach an investor, analyst, or economist uses, there are different ways to identify issues with an investment opportunity.
- When deciding whether to invest in a business or a security, investors must do their homework. Financial statements can be used to spot potential warning signs and offer a wealth of information about an organization's health.
Learn more about Financial statements, here
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