Which of the Following Makes Up the Smallest Category of Consumer

question 164

Multiple Choice

Which of the following makes up the smallest category of consumer spending in Canada?

• A) food
• B) transportation
• C) alcoholic beverages and tobacco products
• D) shelter

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Definitions:

Liquidity

The extent to which an asset or security can be quickly bought or sold in the market without affecting its price.

Payback Period

The number of years it takes a firm to recover its project investment. Payback does not capture a project’s entire cash flow stream and is thus not the preferred evaluation method. Note, however, that the payback does measure a project’s liquidity, and hence many firms use it as a risk measure.

Capital Budget Expenditures

Outlays of funds by a company for major investments or acquisitions intended to drive future growth.

Compliance

Adherence to laws, regulations, guidelines, and specifications relevant to its business processes.