A Company in the Growth Phase of Its Product Life

question 69

Multiple Choice

A company in the growth phase of its product life cycle will normally have which of the following patterns of cash flows?

• A) Negative cash flows from operations, negative cash flows from investing and positive cash flows from financing.
• B) Negative or positive cash flows from operations, negative cash flows from investing and positive cash flows from financing.
• C) Positive cash flows from operations, positive cash flows from investing and positive cash flows from financing.
• D) Negative or positive cash flows from operations, negative cash flows from investing and negative cash flows from financing.

---

Definitions:

Improvement

A positive change or enhancement in a situation or condition.

Traditional Market

A marketplace where goods are exchanged in a conventional manner, often characterized by physical stalls, personal interactions, and negotiation.

Cacao

The seed from which chocolate is made and is the product of the cacao tree, native to the Americas. It is also used in making cocoa butter and cocoa powder.

Commercial Use

The utilization of goods or services for business purposes, often involving selling or profit-making activities.