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

Multiple Choice

The product life-cycle concept from microeconomics and marketing provides useful insights into the relations among cash flows from operating, investing, and financing activities.During the _____ cash outflow exceeds cash inflow from operations because operations are not yet earning profits while the firm must invest in accounts receivable and inventories.Investing activities result in a net cash outflow to build productive capacity.Firms must rely on external financing during this phase to overcome the negative cash flow from operations and investing.

A) introduction phase
B) growth phase
C) mature phase
D) late maturity phase
E) decline phase