The Industry Life Cycle Model Identifies Four Sequential Stages in the Evolution

question 1

True/False

The industry life cycle model identifies four sequential stages in the evolution of an industry that lead to four distinct kinds of industry environment.

---

Definitions:

Resale Proceeds

The amount of money received from selling an asset that was previously purchased.

Price-Earnings Ratio

A valuation measure comparing the current share price of a company to its per-share earnings, used to evaluate if a stock is over or undervalued.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Selling Bonds

The act of offering bonds to investors as a way to raise funds; bonds are debt securities under which the issuer owes the holders a debt.