Stage 1 of the industry life cycle is characterized by all of the following EXCEPT:
A)there is little demand for the company's products and services.
B)the firm's revenue is low but there are high prospects for growth.
C)competition is fierce and profit margins begin to narrow.
D)firms need a significant amount of cash in order to grow.

Question

Quizplus · Accepted Answer

In Stage 1 of the industry life cycle, competition is typically not fierce because the market is just developing, and firms are focused on growth and establishing their products or services. Fierce competition and narrowing profit margins are characteristics of later stages in the life cycle.

Stage 1 of the Industry Life Cycle Is Characterized by All