Which of the Following Are Examples of Defensive Industries

question 32

Multiple Choice

Which of the following are examples of defensive industries?

• A)Food producers.
• B)Durable goods producers.
• C)Pharmaceutical firms.
• D)Public utilities.
• E)A,C and D

Recognize different types of real options in capital investment and their impact on project valuation.

Calculate and interpret the Net Present Value (NPV) and Internal Rate of Return (IRR) for investment projects under uncertainty.

Explain the role of probability in evaluating project cash flows and outcomes.

Understand the certainty equivalent approach and its application in adjusting cash flows for risk.

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Definitions:

Bid Competition

A procurement process where vendors or contractors submit their proposals or bids, competing to win a contract based on price, quality, and/or service criteria.

Upward Pressure

Forces or conditions within a market that cause prices to rise, often due to factors like increased demand, higher production costs, or supply shortages.

Would-Be Buyers

Potential customers who have shown interest in purchasing a product or service but have not yet made a purchase.

Competitive Auction

A bidding process where various buyers compete to acquire goods or services by offering increasingly higher prices.