In the Consolidation Stage of the Industry Life Cycle

question 55

Multiple Choice

In the consolidation stage of the industry life cycle,

• A) it is difficult to predict which firms will succeed and which firms will fail.
• B) industry growth is very rapid.
• C) the performance of firms will more closely track the performance of the overall industry.
• D) it is difficult to predict which firms will succeed and which firms will fail, and industry growth is very rapid.
• E) industry growth is very rapid, and the performance of firms will more closely track the performance of the overall industry.

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Definitions:

Southwestern Bell

A former American telecommunications company that was one of the seven original Regional Bell Operating Companies after the U.S. Department of Justice broke up the American Telephone & Telegraph Company in 1984.

Legal Barrier

Any law or regulation that limits or controls the entrance of a firm into an industry or the launch of a new product.

Licensing

A regulatory process that allows individuals and companies to operate legally in a professional field or to sell particular goods and services.

Patents

Legal rights granted to inventors to exclusively exploit their inventions for a certain period.