Which of the Following Is a Characteristic of the Growth

question 133

Multiple Choice

Which of the following is a characteristic of the growth stage of the product life cycle?

• A)advertising emphasis switches to primary demand
• B)a growing proportion of repeat purchasers to initial purchasers
• C)the number of distribution outlets shrinks due to growing inefficiencies
• D)profit margins increase as sales increase
• E)no new product features are added to maximize profits

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Definitions:

Board of Directors

A group of individuals elected by shareholders to oversee the management and governance of a corporation.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and a stake in the company's performance.

Journal Entry

A record in accounting that shows the financial transactions of a company in terms of debits and credits.

Cost Method

An accounting approach where investments are recorded at their acquisition cost, with income recognized only when dividends are received from the investee.