Normal Goods Flashcards
1
Q
1
A
A business that sells normal good is likely to have stable, predictable sales
2
Q
2
A
This is because when incomes change demand does not change very much
3
Q
3
A
They are unlikely to see a significant fall or rise in profits when incomes change
4
Q
4
A
They are unlikely to make a loss and can therefore keep up with loan repayments
5
Q
5
A
This could result in them getting low interest rates on loans leading to lower expenses
6
Q
6
A
The business is attractive to banks as it is a safe investment
