Companies that are little affected by the business cycle,exhibiting reasonably stable performance independent of the level of economic activity are called:

A) cyclical companies
B) offensive companies
C) defensive companies
D) growth companies

Question

Companies that are little affected by the business cycle,exhibiting reasonably stable performance independent of the level of economic activity are called:

A) cyclical companies
B) offensive companies
C) defensive companies
D) growth companies

Quizplus · Accepted Answer

Companies with performance that is positively related to the business cycle are called cyclical companies.Companies that are little affected by the business cycle,maintaining fairly stable performance regardless of the level of economic activity,are classified as defensive companies.Those that tend to be independent of the business cycle,with strong growth evident over a substantial period of time,are referred to as growth companies.

Companies That Are Little Affected by the Business Cycle,exhibiting Reasonably