Procter & Gamble is not affected by the recession in the economy; we will consider Procter & Gamble as:
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A. B. C. D.B
The correct answer is B. Defensive industry.
A defensive industry refers to the companies or sectors that are less affected by changes in the business cycle, such as economic recessions. These companies typically provide goods or services that are considered essential to consumers, and therefore, the demand for their products remains relatively stable during tough economic times.
Procter & Gamble is a consumer goods company that produces and sells a wide range of everyday products such as cleaning supplies, personal care products, and household goods. These products are considered essential items that consumers need regardless of the state of the economy. Therefore, Procter & Gamble is less affected by economic downturns and can be classified as a defensive industry.
Cyclic industries, on the other hand, are highly sensitive to changes in the business cycle, and their revenues and profits fluctuate according to the ups and downs of the economy. Examples of cyclic industries include construction, automobiles, and travel and tourism.
Interest-sensitive industries are those that are affected by changes in interest rates, such as banking and financial services, real estate, and insurance. The demand for the products and services of these industries tends to rise when interest rates are low and fall when interest rates are high.
In conclusion, Procter & Gamble's business model allows it to be classified as a defensive industry, which means it is less affected by the recession in the economy.