Stocks Whose Price Movements Tend to Follow the Business Cycle

question 124

Multiple Choice

Stocks whose price movements tend to follow the business cycle are called:

• A) cyclical stocks
• B) defensive stocks
• C) speculative stocks
• D) income stocks
• E) tech stocks

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Definitions:

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods and shipping costs once the goods leave the seller's premises.

Perpetual Inventory

An inventory management system where updates are made continuously to reflect items added or sold, providing a real-time view of inventory levels.

Freight In

Costs associated with transporting goods into a warehouse or to a business, typically recorded as part of inventory cost.

Cost Of Merchandise Sold

The total cost incurred to manufacture or purchase products that were sold to customers during a period.