Which of These Statements Regarding the Industry Life Cycle Is

question 83

Multiple Choice

Which of these statements regarding the industry life cycle is true?

• A) Partial power of the market life cycle is its ability to serve as a short-run forecasting device.
• B) Trends suggested by the market life cycle model are generally not reversible or repeatable.
• C) It points out the need to maintain a differentiation advantage and a low cost advantage.
• D) It is important for company generic strategies, functional areas, value-creating activities, and overall objectives.

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Definitions:

Semi-Strong Efficiency

A form of market efficiency that asserts all public information is already reflected in stock prices, making it impossible to achieve consistently higher returns.

Historical Information

Past data or records that provide context or insight into an event, individual, or institution's background.

Market Prices

The current price at which an asset or service can be bought or sold in a market, determined by the supply and demand forces.

Percentage Return

The return on an investment expressed as a percentage of the original investment amount.