Key words

Question 1

large

Answer 1

• lots of past data
• can withstand an economic downturn
• not prone to random fluctuations

Question 2

long-established

Answer 2

• lots of past data

* growth settled down

Question 3

food manufacturer

Answer 3

• defensive company - stable growth even in an economic downturn

Question 4

listed

Answer 4

• accounts available for inspection

* market value

Question 5

highly-geared

Answer 5

• volatile returns

Question 6

property company

Answer 6

• cyclical

* not a lot of tangible assets - NAV

Question 7

small

Answer 7

• not a lot of data

* cannot withstand growth in an economic downturn

Question 8

rapidly growing

Answer 8

• current earnings are not representative of the future: growth is not sustainable

Question 9

accounts

Answer 9

• follow accounting rules

Question 10

exchange rate

Answer 10

• imports / exports

* currency risk

Question 11

composite insurer

Answer 11

• sell both life and non-life insurance