The Product Life-Cycle Concept from Microeconomics and Marketing Provides Useful

question 23

Multiple Choice

The product life-cycle concept from microeconomics and marketing provides useful insights into the relations among cash flows from operating, investing, and financing activities.During the _____ cash outflow exceeds cash inflow from operations because operations are not yet earning profits while the firm must invest in accounts receivable and inventories.Investing activities result in a net cash outflow to build productive capacity.Firms must rely on external financing during this phase to overcome the negative cash flow from operations and investing.

• A)introduction phase
• B)growth phase
• C)mature phase
• D)late maturity phase
• E)decline phase