You want to invest in a firm whose profits show small fluctuations throughout the business cycle.Which of the following would you invest in?
A)a corporation that depended heavily on business fixed investment
B)a corporation that depended heavily on residential investment
C)a corporation that depended heavily on consumer nondurables
D)a corporation that depended heavily on consumer durables

Question

Quizplus · Accepted Answer

Consumer nondurables are goods that are essential and are used regularly. Hence their demand remains constant throughout the business cycle. Therefore, investing in a corporation that depends heavily on consumer nondurables is a good choice as it will show small fluctuations in profit throughout the business cycle.

You Want to Invest in a Firm Whose Profits Show