Sprad Risk Flashcards
1
Q
1
A
If a business sells a combination of normal, luxury and inferior goods
2
Q
2
A
They will have a blanched product portfolio
3
Q
3
A
They will be less vulnerable to changes in consumer incomes (e.g rising rates of inflation, increases in unemployment…)
4
Q
4
A
Therefore, if consumers incomes fall
5
Q
5
A
Business will still experience a consistent demand, as consumers switch from luxury - inferior goods
6
Q
6
A
Consistent cash inflows as sales have not dropped
7
Q
7
A
Positive net cash flow
8
Q
8
A
Able to pay day to day bills
