In the Decline Phase of the PLC, Price Is Pressured

question 70

Multiple Choice

In the decline phase of the PLC, price is pressured as a result of _______.

• A) Consumers forgetting about the brand
• B) New companies forging ahead in the market and offering lower prices to gain market share
• C) Suppliers give us price concessions but that does not help with the reduction in market size
• D) Competitors dropping price and costs remain high due to lower sales volume
• E) None of the above

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Definitions:

Share Capital

The total value of a company's shares of stock that have been authorized, issued, and purchased by investors.

Financial Statements

Formal records that outline the financial activities and conditions of a business, entity, or individual, including the balance sheet, income statement, and cash flow statement.

Retained Earnings

Funds that are not distributed as dividends but are reserved by the company to reinvest in its business, pay off debt, or save for future use.