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 _____, weakening profitability-from reduced sales or reduced profit margins on existing sales- signals the beginning of the phase, but ever-declining accounts receivable and inventories can produce positive cash flow from operations.In addition, sales of unneeded property, plant, and equipment can result in positive cash flow from investing activities.Firms can use the excess cash flow to repay remaining debt or diversify into other areas of business.

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