Regarding Product Life Cycles, Which of the Following Is Not

question 146

Multiple Choice

Regarding product life cycles, which of the following is not true?

• A) Industry profits are likely to level off or decline before sales level off.
• B) The level of promotion usually decreases in market maturity since there is less revenue to cover the cost.
• C) Many close substitutes are usually competing in the market maturity stage.
• D) It is usually expensive for a new firm to enter in the market maturity stage.
• E) There is a downward pressure on prices over time.

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Definitions:

Short-Term Financing

Borrowing funds or obtaining financial support for a short duration, typically less than a year, to cover immediate needs.

Factor Purchases

Transactions where a company outsources services or acquires assets, typically involving a third-party, or "factor," to facilitate business operations.

Receivables Collection

The process of managing and collecting payments from customers who have purchased goods or services on credit.

Trust Receipt

A document issued by a bank to a buyer who has obtained a loan to purchase goods, wherein the buyer agrees to hold the goods in trust for the bank until the loan is repaid.