The Effect of a Recession on a Company Like Bombardier

question 138

Multiple Choice

The effect of a recession on a company like Bombardier is such that

• A)sales decline more sharply for Bombardier as compared to firms that do not produce durable goods.
• B)profits fall less sharply as compared to firms that do not produce durable goods.
• C)the decline in sales is more short-lived as compared to firms that do not produce durable goods.
• D)there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods.
• E)sales rise sharply as Bombarier's sales rise.

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Definitions:

Loss Of Control

Refers to a situation where an entity or individual no longer has the ability to govern or manage the operations or decisions of a company or asset.

Financial Statements

Financial statements are written records that convey the business activities and the financial performance of a company, including the balance sheet, income statement, and cash flow statement.

Fair Value

A measure of the price at which an asset or liability could be exchanged in a current transaction between willing parties.

IASB

The International Accounting Standards Board, an independent body that develops and approves International Financial Reporting Standards (IFRS).