Equity Investments - Equity Investments Section 2
61. Which of the following is least likely a characteristic of mature stage?
- Option : C
- Explanation : Mature stage has high barriers to entry and there is little or no growth. It is also likely that industry consolidation takes place.
- Option : C
- Explanation : A growth industry tends to be characterized by rapidly increasing demand, improving profitability, falling prices, and relativity low competition among companies in the industry.
- Option : B
- Explanation : Non-cyclical companies produce goods or services for which demand remains relatively stable throughout the business cycle. The consumer staples sector exhibits relatively less economic sensitivity and thus tends to be over-weighted during economic slowdowns and when revenues and profits are expected to be under pressure.
