Which of the Following Is a Characteristic of the Growth

question 265

Multiple Choice

Which of the following is a characteristic of the growth stage of the product life cycle?

• A) Advertising emphasis switches to primary demand.
• B) The proportion of repeat purchasers to initial purchasers grows.
• C) The number of distribution outlets shrinks due to growing inefficiencies.
• D) Profit margins increase as sales increase.
• E) Product features remain consistent to maximize profits.

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Definitions:

Interest Payments

Payments made to lenders as compensation for borrowing money, typically calculated as a percentage of the principal.

Debt

An amount of money borrowed by one party from another, often used to make large purchases that are not affordable with available cash.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, without relying on inventory.