Economists Define a Recession as a Contraction in the Economy

question 90

True/False

Economists define a recession as a contraction in the economy in at least three out of the last five quarters.

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Definitions:

Weighted Average Cost

This is often used in the context of 'Weighted Average Cost of Capital (WACC)', which measures a company's cost of capital from all sources weighted by their relative use in the financial structure.

EPS

Earnings Per Share is a company's profit divided by the outstanding shares of its common stock, serving as an indicator of a company's profitability.

Business Risk

Business risk relates to the potential that a company's operations or environment will lead to financial loss or failure.

Capital Structure

The mix of different forms of capital a company uses to finance its operations and growth, including debt, equity, and hybrid securities.