11 BST 1.4 Business Life Cycle

Rapid increase in sales, cash flow problems, competitors attracted to the market is characteristic of which stage of the business life cycle?

• Establishment

• Growth

• Maturity

• Post-maturity

Slow and erratic sales, constant cash outflow and lack of established customer base is characteristic of which stage of the business life cycle?

• Growth

• Establishment

• Maturity

• Post-maturity

The business may be in a steady state, renewal or decline of the business life cycle.

• Growth

• Maturity

• Establishment

• Post-Maturity

The owners must decide whether to reignite growth, sell or close the business during this stage.

• Establishment

• Growth

• Maturity

• Post-Maturity

Some growth may still occur but not at the same rate as previously

• Maturity

• Post Maturity

• Establishment

• Growth

Challenges include new competitors, not getting too comfortable in the market and giving control over to reliable staff.

• Growth

• Post-maturity

• Maturity

• Establishment

The correct order of the business life cycle is

• post-maturity, post-maturity, establishment, growth

• maturity, post-maturity, establishment, growth

• establishment, maturity, growth, post-maturity

• establishment, growth, maturity, post-maturity

Sales level off, market for product is saturated, focus on remaining competitive is characteristic of which stage of the business life cycle?

• Establishment

• Growth

• Maturity

• Post-maturity

Falling sales and loss of market share is characteristic of which stage of the business life cycle?

• Establishment

• Growth

• Maturity

• Post-Maturity

A strategy to meet the cash flow challenges at the Growth stage could include developing an effective credit policy

• True

• False