Which of the Following Is True Regarding the Maturity Stage

question 74

Multiple Choice

Which of the following is true regarding the maturity stage of the product life cycle?

• A)It is characterized by the adoption of products by early adopters and early majority.
• B)Firms try to ride the sales trend and firmly establish the brand during this stage.
• C)It is characterized by rising sales, increasing profits, and few competitors.
• D)Most firms usually exit the market at this stage on account of low profit margins.
• E)It is characterized by increased marketing costs, low profits, and market saturation.

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Definitions:

Earnings

The amount of profit that a company produces over a specific time period, typically reported as net income.

Mature Firms

Mature firms are companies that have reached a phase of growth where earnings, sales, and cash flows are relatively stable and predictable.

Capital Mobility

The ease with which investment capital can move from one asset or market to another, influenced by both domestic and international financial policies.

Dividend Yields

The financial ratio that shows how much a company pays out in dividends each year relative to its stock price.