Question

_____ tend to outperform during an economic slowdown. a. Consumer durable goods b. Consumer staples c. Cyclical companies

Answer 1

Answer:

Option C, Cyclical companies, is the right answer.

Explanation:

Option C, “Cyclical companies” is the correct answer because the cyclical companies are sensitive to the business situation or cycle. During the economic prosperity, the revenue of these type of firms is expansionary and higher. While in the situation of economic slow down the performance of these companies goes on decreasing or outperform and its operation starts contracting in the adverse economic situation. Therefore. The option “Cyclical companies” is the right answer.