A Stock Generally Issued by Companies Expected to Provide an Uninterrupted

question 91

Multiple Choice

A stock generally issued by companies expected to provide an uninterrupted stream of dividends and good long-term growth prospects is called a(n) :

• A) blue-chip stock.
• B) growth stock.
• C) income stock.
• D) defensive stock.
• E) cyclical stock.

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Definitions:

Cash Cycle

The amount of time required for a company to turn its inventory and various assets into cash through sales revenue.

Restrictive Policy

A policy implemented by a company or government to limit or control certain activities, often to ensure financial stability or compliance with regulations.

Flexible Policy

A strategy or guideline that is adaptable to changes and allows for discretionary decisions based on circumstances.

Inventory Stock-outs

Occurrences when items are not available in inventory, leading to missed sales or delays.