You Want to Invest in a Firm Whose Profits Show

question 39

Multiple Choice

You want to invest in a firm whose profits show large fluctuations throughout the business cycle.Which of the following would you invest in?

• A)A corporation that depends heavily on business fixed investment
• B)A corporation that depends heavily on consumer services
• C)A corporation that depends heavily on consumer nondurables
• D)A corporation that depends heavily on government purchases

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Definitions:

Cognitive Component

The aspect of attitudes or beliefs that involves knowledge, thoughts, and beliefs about objects, people, or situations.

Negative Attitude

refers to a pessimistic or adverse viewpoint towards a subject, resulting from a person's thoughts, beliefs, and feelings.

Cheating

The act of being dishonest or breaking rules to gain an unfair advantage, especially in a competitive situation.

Passionate Love

An intense emotional state characterized by romantic attraction, physical desire, and an overwhelming fascination with another person.