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

question 116

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 _____, net income usually reaches a peak, and working capital stops growing.Operations generate positive cash flow, enough to finance expenditures on property, plant, and equipment.Capital expenditures usually maintain, rather than increase, productive capacity.Firms use the excess cash flow to repay borrowing from the introduction and growth phases and to begin paying dividends to shareholders.

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

---

Definitions:

Populated Cites

Urban areas that host dense concentrations of people in comparison to rural areas.

Social Rank

denotes an individual's or group's position within a social hierarchy, often determined by factors such as wealth, occupation, education, and power.

Prestige

The respect and admiration that an individual, occupation, or organization receives based on perceived success, achievements, or rank within a society.