The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities.The beginning of the decline phase can produce
A)negative cash flow from operations.
B)sales of unneeded property, plant, and equipment can result in negative cash flow from investing activities.
C)excess cash flow to repay remaining debt or diversify into other areas of business.
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

In the decline phase, a company may generate excess cash flow from operations as sales decrease but costs are reduced, allowing it to repay debt or invest in other areas.

The Product Life-Cycle Concept from Microeconomics and Marketing Provides Useful