Only the Strongest,most Stable and Safe-Return Companies Can Be Called

question 119

Multiple Choice

Only the strongest,most stable and safe-return companies can be called

• A) blue chip stocks.
• B) growth companies.
• C) income stocks.
• D) defensive stocks.
• E) cyclical stocks.

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Definitions:

Average Operating Assets

A metric representing the average value of the assets involved in the operating activities of a business over a period.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributing to covering fixed costs and generating profit.

Fixed Costs

Fixed costs refer to business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

ROI

Return on Investment, a performance metric used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.