Industries That Generally Perform Well When Other Industries Are Performing

question 5

Multiple Choice

Industries that generally perform well when other industries are performing well are referred to as:

• A)Diversified industries
• B)Cyclical industries
• C)risk-free industries
• D)Systematic risk industries

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Definitions:

Basic Earnings

Basic earnings typically refer to the net income divided by the number of outstanding shares, showing how much profit a company has generated per share.

Diluted Earnings Per Share

A metric that shows the quality of earnings per share if all convertible securities were converted into common stock.

Potential Impacts

Possible effects or outcomes that may occur as a result of a specific action or event.

Basic Earnings

The net income divided by the number of outstanding shares, representing the earnings available to shareholders.