Defensive Companies Are Firms in Which

question 14

Multiple Choice

Defensive companies are firms in which

• A) sales, earnings, and cash flows are extremely uncertain and not necessarily related to the economy.
• B) sales, earnings, and cash flows are likely to withstand changes caused by the economic environment.
• C) sales, earnings, and cash flows are heavily influenced by aggregate business activity.
• D) sales, earnings, and cash flows are growing exponentially.
• E) None of these are correct.

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Definitions:

Infant

A child in the earliest period of life, particularly before they can walk; in legal contexts, often synonymous with a minor.

Adult

An individual who has reached the age of majority, legally recognized as capable of managing personal affairs and responsible for their actions.

Infant

A child in the early stages of life, but in legal terms, an individual who is not yet of legal age and therefore does not have full legal capacity.

Contract

A legally binding agreement between two or more parties, enforceable by law.