Ask Question
BusinessBusiness
28 April, 23:40

Which firm is likely to see its profits reduced the most in a recession: an automobile producer, a manufacturer of boots and shoes, or a janitorial service? Which is likely to see its profits reduced the least? Explain.

+2
Answers (1)
  1. 29 April, 01:35
    0
    Automobile producer would see profit reduced the most and janitorial services would be least affected.

    Explanation:

    Recession is one of the phases of the trade cycle. In this phase of the trade cycle, there is downfall in the production, consumption, investment and saving in the economy. The growth rate of the economy sees a downfall in this phase.

    Among the examples given here, automobile producer is the firm which would be one of the most affected company during the time of recession because it is not something essential but luxury.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which firm is likely to see its profits reduced the most in a recession: an automobile producer, a manufacturer of boots and shoes, or a ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Tudor Corp. has an ending balance in the accounts receivable account of $20,000. Tudor recorded bad debt expense of $1,000. Tudor has an ending balance in the allowance for uncollectible accounts of $2,000.
Answers (1)
Match the type of market structure with each example. A. Pure competition B. Near monopoly C. Monopolistic competition D. Oligopoly Computer operating systems Fast food restaurants Online auctioning Car makers
Answers (1)
In its ads, the now defunct car company Saturn spent as much time talking about the great service customers receive as it did in discussing the quality of its cars. Such a promotion was an example of the
Answers (1)
If the dollar buys fewer bananas in guatemala than in honduras, then traders could make a profit by
Answers (1)
On January 1, 2013, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting.
Answers (1)
New Questions in Business
Buckman Company uses the weighted average method for process costing. The cost per equivalent unit for direct materials is $5.00. The cost per equivalent unit for conversion costs is $3.00. The company completed and transferred out is 40,000 units.
Answers (1)
Which of the following transactions would be recorded if using the accrual basis of accounting but not if using the cash basis of accounting? A. Paying off loans B. Purchasing inventory on account C. Collecting customer payments D. Borrowing money
Answers (2)
Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when A. A royalty contract with a distribution in which the consideration to be received depends on sales to end customers. B.
Answers (1)
ALT Inc. conducts periodic reviews of the distribution of pay and the favorable outcomes granted to employees, such as promotions and increased office space.
Answers (1)
If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in the owner's equity amount? A. Decrease of $2,000 B. Decrease of $2,000 C. Increase of $10,000 D. Decrease of $10,000
Answers (1)
Home » Business » Which firm is likely to see its profits reduced the most in a recession: an automobile producer, a manufacturer of boots and shoes, or a janitorial service? Which is likely to see its profits reduced the least? Explain.
Sign Up Forgot Password?