The Life Cycle Idea Used to Describe Industries Is Clearly

question 6

Multiple Choice

The life cycle idea used to describe industries is clearly analogous to a living organism that experiences birth,growth,maturity,and death.This comparison

• A) provides clear insight into how organizations change over time.
• B) has some limitations and does not always hold true.
• C) is appropriate because firm rarely experience renewal.
• D) perfectly explains the cereal industry.

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Definitions:

Mutually Exclusive

A situation where the occurrence of one event means the other cannot occur at the same time.

NPV

Net Present Value, a calculation used to assess the profitability of an investment, considering the time value of money.

Discounted Payback Period

The period it takes for the cash flows from a capital investment project to equal the initial investment cost, considering the time value of money.

After-Tax Cash Flows

After-tax cash flows are the net cash inflows and outflows of a business after taxes have been accounted for, used in analysis of investment projects.