A firm with cyclical earnings is characterized by:
A) revenue patterns that vary with the business cycle.
B) high levels of debt in their capital structures.
C) high fixed costs.
D) high price per unit.
E) low contribution margins.

Question

Quizplus · Accepted Answer

Cyclical earnings mean that the firm's revenue patterns fluctuate with the business cycle, increasing during economic expansions and decreasing during recessions.

A Firm with Cyclical Earnings Is Characterized By