A Manufacturer with a Product in the Decline Stage of the Product

question 37

Multiple Choice

A manufacturer with a product in the decline stage of the product life-cycle might decide to ________ if it has reason to hope that competitors will leave the industry.

• A)harvest the product
• B)maintain the product without change
• C)drop the product
• D)search for replacements
• E)delay planning

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Definitions:

Net Income

The conclusive profit of a corporation post-deduction of all operational costs and taxation from the aggregate revenue.

Cash Dividends

Payments made by a corporation out of its earnings to its shareholders, usually in the form of cash.

Stock Dividends

A payment made to shareholders in the form of additional shares, rather than cash.

Stockholders' Equity

Funds owned by the shareholders of a company, calculated as the company's total assets minus its total liabilities, representing ownership interest in the company.