Choice "C" is correct. Plans to delay expenditures, such as extending the due dates of existing loans, would be considered a mitigating factor.
Choice "d" is incorrect. Plans to reduce expenditures would be considered a mitigating factor, but operating at increased levels of production would likely increase expenditures, not reduce them.
Choice "a" is incorrect. Plans to delay expenditures would be considered a mitigating factor. Accelerating expenditures would not be a mitigating factor, as it would tend to reduce cash flow even further.
Choice "b" is incorrect. Issuance of stock options does not provide an inflow of cash, and would not be a mitigating factor. (Remember that options would only provide an inflow of cash if they were exercised.)