Which of the Following Is True Regarding the Organizational Lifecycle

question 62

Multiple Choice

Which of the following is true regarding the organizational lifecycle?

• A) Companies pass through the different stages of the lifecycle in a fixed order.
• B) The organizational lifecycle does not incorporate the decline of organizations.
• C) Introduction, growth, maturity, and decline are the stages of the lifecycle.
• D) Manpower and capital requirements stay constant throughout the organizational lifecycle.
• E) Once an organization is on the decline, recovery is not possible.

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Definitions:

Deferred Tax Asset

A tax relief that results from over-payment or advance payment of taxes, which can be used to reduce a company's future tax liability.

Prepaid Asset

Expenses paid in advance for goods or services to be received in the future, which are recorded as assets until they are used or consumed.

Taxable Income

The amount of income subject to taxes, calculated by adjusting gross income for deductions, exemptions, and allowances, according to tax laws.

Deferred Income Tax Asset

A balance sheet item that represents taxes paid or carried forward but not yet realized on the income statement.