Companies That Are Exposed to the Business Cycle

question 37

Multiple Choice

Companies that are exposed to the business cycle:

• A) tend to have high market risk.
• B) tend to have low market risk.
• C) have negligible specific risk.
• D) are safe investments.

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Definitions:

Flat Organizational Structure

A type of organizational configuration that has few or no levels of middle management between staff and executives, promoting faster decision-making and communication.

Customer Departmentalization

The arrangement of jobs around the needs of various types of customers.

Sales Account

A record or agreement defining the relationship and transactions between a buyer and a seller, often including terms of sale, credit limits, and purchase history.