Which of the Following Is True of the Product Life

question 34

Multiple Choice

Which of the following is true of the product life cycle (PLC) ?

• A) Product forms have longer life cycles than product classes.
• B) The PLC concept can be applied to styles but not to fashions and fads.
• C) It is generally difficult to forecast the sales level at each PLC stage.
• D) All products pass through the stages of PLC in the same order.
• E) All products generally go through all five stages of the PLC.

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Definitions:

Coupon Rate

The interest rate that an issuer of a bond agrees to pay to the holder of the bond, expressed as a percentage of the bond's face value.

Cost of Debt

the effective rate that a company pays on its current debt.