Asked by stephan vailes on Apr 28, 2024
Verified
In the start-up stage of the industry life cycle,
A) it is difficult to predict which firms will succeed and which firms will fail.
B) industry growth is very rapid.
C) firms pay a high level of dividends.
D) it is difficult to predict which firms will succeed and which firms will fail, and industry growth is very rapid.
E) industry growth is very rapid, and firms pay a high level of dividends.
Start-up Stage
The early phase in the lifecycle of a company where it is developing its product or service, seeking to establish its market presence, and often characterized by initial funding rounds.
Industry Growth
The process of expanding production and sales in a particular sector, often measured by increases in revenue, market share, or productivity.
Industry Life Cycle
A concept that describes the stages of growth and development through which an industry progresses over time, including introduction, growth, maturity, and decline.
- Assess the traits and challenges that organizations face across different periods of the industry life cycle.
Verified Answer
JD
Jasleen DhillonApr 29, 2024
Final Answer :
D
Explanation :
In the start-up stage of the industry life cycle, it is indeed difficult to predict which firms will succeed and which firms will fail due to the high level of uncertainty and innovation. Additionally, industry growth is typically very rapid as new products and services are introduced and demand begins to accelerate. Firms in this stage are less likely to pay high dividends, as they often reinvest any earnings back into the company to fuel growth.
Learning Objectives
- Assess the traits and challenges that organizations face across different periods of the industry life cycle.