If an Organization Chooses "Harvesting" as a Decline Stage PLC

question 8

Multiple Choice

If an organization chooses "harvesting" as a decline stage PLC strategy,the first step in using such a strategy would likely be to ________.

• A) rejuvenate the brand or product
• B) cut R&D costs and plant and equipment investment
• C) cut all promotional expenses
• D) cancel distribution contracts
• E) require that all distributors reduce inventory of older models of the product

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Definitions:

Discount

A reduction from the usual cost of something or the interest that is deducted from the face value of a promissory note when it is issued.

Perpetual Inventory System

An inventory management method where updates are made continuously as inventory items are bought and sold.

Liability

Financial obligations or debts that a company owes to others.

Discount Period

The Discount Period refers to a specific timeframe during which a buyer can pay less than the full invoice amount as an incentive for early payment.