Equity Investments Q207
0. According to the industry life-cycle model, the growth phase is most likely characterized by:
- Option : B
- Explanation : A growth industry is characterized by rapidly increasing demand, falling prices, improving profitability, and relatively low competition among companies operating in the industry. Prices fall in the growth stage because economies of scale are achieved and the distribution channels develop. Industry consolidation is a feature of the maturity phase while intense competition characterizes the shakeout stage.
