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andreev551 [17]
3 years ago
11

Which one of the following firms would be described as having below-average sensitivity to the state of the economy?

Business
1 answer:
Wewaii [24]3 years ago
4 0

Answer: A) A defensive firm

Explanation:

Defensive firms have a below-average sensitivity to the state of the Economy which is shown by them maintaining stable returns regardless of if the Economy is in boom or in a recession.

Because of this their stock are highly sough after in Recessions as opposed to Booms because in Recessions they offer better returns than other types of firms but in Booms they will offer lower.

Examples of such firms include those that supply human necessities such as electricity and water.

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