Your assignment is to identify the units that will be less adversely affected by the recession. You believe that the units’ different characteristics will

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Your assignment is to identify the units that will be less adversely affected by the recession. You believe that the units’ different characteristics will

Your assignment is to identify the units that will be less adversely affected by the recession. You believe that the units’ different characteristics will cause some of them to be affected to a more significant extent than others are.

Answer & Explanation (1)

Explanation
Insurance companies often invest in long-term bonds or securities which guarantee annuity payments. Therefore, the composition of stocks in their portfolio is often less. When the recession strikes the economy, stocks are affected the most. Due to less investment in the stock market, insurance companies won't be affected by the recession.

Sample Response
Insurance Operations

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