The CEO of David's Firm Just Came Back from a Business

question 142

Multiple Choice

The CEO of David's firm just came back from a business seminar,and he called David into his office."I just found out about the product life cycle curve in a strategy seminar.This is a great tool.I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that:

• A) the product life cycle is not a useful concept.
• B) it is often impossible to identify with precision where a product is in the product life cycle.
• C) the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation.
• D) the idea has been discredited by recent research.
• E) All of these.

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Definitions:

Financial Statement

Consolidated documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position at a specific point in time, listing assets, liabilities, and shareholders' equity.

Income Statement

A document detailing a firm's income and outgoings during a certain time, ending in either a profit or a deficit.

Net Income

The total profit of a company after subtracting all costs, expenses, and taxes from the total revenue.