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

question 79

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.The _____ phase reflects sales of successful products, and net income turns positive.The firm makes more sales, but it also needs to acquire more goods to sell.Because it usually must pay for the goods it acquires before it collects for the goods it sells, the firm finds itself often short of cash from operations.The faster it grows (even though profitable) , the more cash it needs.Banks do not like to lend for such needs.They view such needs (even though for current assets) as a permanent part of the firm's financing needs.Thus, banks want firms to use shareholders' equity or long-term debt to finance growth in nonseasonal inventories and receivables.

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

---

Definitions:

Prevalence Rates

Indicate the total number of cases of a disease or condition present in a population at a specific time or over a specific period.

Gender-Biased Criteria

Standards or guidelines that unfairly discriminate against a particular gender, often leading to inequitable outcomes or treatments.

Comorbidity

The occurrence of one or more secondary diseases or conditions alongside a main disease or condition.

Overlap

The similarity of symptoms in two or more different disorders (that is, some of the same criteria apply to different diagnoses), which creates problems with diagnosis. See also comorbidity.