Canadian Securities Course (CSC) Level 2 Practice Exam

What are the characteristics of Emerging Growth Industries as presented in the text?

1. Customer awareness and lower production costs

2. Impossible to predict survival and large start

3. Decreased dividend yield and increased competition

4. Profit margin decrease and expansion into new business

The correct answer is: Impossible to predict survival and large start

Emerging Growth Industries are characterized by their unpredictability in terms of survival and their ability to attract significant initial investment. These industries often represent new technologies or markets with high growth potential but also come with a high level of risk due to their unproven track record. Therefore, option B is the correct choice as it effectively captures these key characteristics of Emerging Growth Industries. Options A, C, and D are not characteristics commonly associated with Emerging Growth Industries. Option A focuses more on operational aspects such as customer awareness and production costs. Option C refers to decreased dividend yield and increased competition, which are not exclusive to Emerging Growth Industries. Option D mentions profit margin decrease and expansion into new business, which are not universally applicable to Emerging Growth Industries either.