Companies whose earnings have increased at an above-average level over the recent past are called:

Question

Quizplus · Accepted Answer

Growth companies are those which have demonstrated above-average earnings growth and are expected to continue growing at a faster rate than the overall market. This is in contrast to other types of companies such as cyclical companies, which are more sensitive to changes in economic conditions, and income companies, which prioritize paying out dividends to shareholders rather than reinvesting earnings for growth. Speculative companies are those with uncertain or high-risk prospects, while defensive companies are those which tend to perform well during times of economic uncertainty or recession. None of these categories fit the description of companies with above-average earnings growth, making B) the best choice.

Companies Whose Earnings Have Increased at an Above-Average Level Over