Which of the Following Inferences Can Be Made from the Life

question 52

Multiple Choice

Which of the following inferences can be made from the life cycle model of business?

• A) Resource maturity is the first stage in the life cycle of most of the small businesses.
• B) Much of the firm's development as a business is predictable within some broad terms.
• C) Most of the small businesses go through the takeoff stage.
• D) The study of the life cycle model of business shows that the jump from the success stage to the resource maturity stage is impossible.

---

Definitions:

Section Reporting

Section reporting involves the segregation of financial data from different sectors or segments of a business to analyze performance individually.

Asset Turnover

A financial ratio indicating how efficiently a company uses its assets to generate sales revenue.

Fair Value

An estimate of the price at which an asset would change hands between a willing buyer and seller in an arm's length transaction, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Accumulated Depreciation

Represents the total depreciation of a fixed asset over its life up to the current date.