Which of the Following Statements About the Decline Stage of the Product

question 329

Multiple Choice

Which of the following statements about the decline stage of the product life cycle is most accurate?

• A)Ironically,in the decline stage,sales decline even though profits increase.
• B)A product always enters the decline stage as the result a major product flaw or marketing misstep.
• C)A major reason that a firm's product enters the decline stage is as a result of a change in the marketing environment.
• D)The only real step that can be taken to avoid the decline stage and ultimately extinction is to increase marketing expenditures as soon as the product enters its maturity stage.
• E)Service industries are exempt from the decline stage because of their intangible nature.

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Definitions:

Required Return

The minimum profit or yield that an investor expects or requires from an investment in order to make it worthy of undertaking.

Shareholders Of Record

Registered individuals or entities that own shares in a corporation as documented by the company, used to determine who is eligible to receive dividends or exercise voting rights.

TSX Rules

The regulations and guidelines set by the Toronto Stock Exchange governing trading, listing, and company conduct.

Debt-Equity Ratio

This financial measure indicates how a company's assets are financed through a mix of shareholders' equity and debt.