Which of the following industries normally has relatively low business risk?
A)Durable goods manufacturers, such as automobile manufacturers
B)Firms that produce staple goods, such as grocery stores and utility companies
C)Cyclical companies, such as construction companies
D)Firms that engage in fairly risky research and development, such as pharmaceutical research companies.
E)Small, single-product firms, especially those that sell primarily to a single customer

Question

Quizplus · Accepted Answer

Firms that produce staple goods, such as grocery stores and utility companies, usually have relatively stable demand for their products or services, which makes their business risk lower compared to other industries. The demand for their products or services is less likely to be impacted by economic cycles or changes in consumer behavior.

Which of the Following Industries Normally Has Relatively Low Business