Reading 40: Industry Analysis-LOS c 习题精选 business, industry, following, face, 2011

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Session 11: Equity Valuation: Industry and Company Analysis in a Global Context
Reading 40: Industry Analysis

LOS c: Analyze the effects of business cycles on industry classification (i.e., growth, defensive, cyclical).

 

 

Which of the following types of industries is typically characterized by above-normal expansion in sales and profits independent of the business cycle?

A) Defensive.

B) Growth.

C) Counter-cyclical.

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A growth industry is typically characterized by above-normal expansion in sales and profits independent of the business cycle.

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Which of the following types of industries is typically characterized by stable performance during both ups and downs of the business cycle?

A) Defensive.

B) Growth.

C) Cyclical.

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A defensive industry is typically characterized by stable performance during both ups and downs of the business cycle.

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Food, beverage, and utility companies are examples of:

A) cyclical industries.

B) defensive industries.

C) declining industries.

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This question tests your understanding of the business cycle reaction approach. Food, beverage, and utility companies provide basic necessities of life and are considered to be defensive industries. In a recession, the demand for their products will not fall as much as for some of the other industry groups.

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Which of the following types of industries is typically characterized by profitability tracking the business cycle, often in an exaggerated manner?

A) Cyclical.

B) Counter-cyclical.

C) Growth.

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A cyclical industry is typically characterized by profitability tracking the business cycle, often in an exaggerated manner.