Venture 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

• Decline

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

• Growth

• Start-up activities

• Maturity

• Decline

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

• Establishment

• Growth

• Maturity

• Innovation/Decline

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

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 (Decline)

A strategy to meet the cash flow challenges at the Start-up activities could include accumulating adequate savings

• True

• False

When a company is unable to pay its debts as and when they fall due is being

• realised

• ceased

• bankrupt

• insolvent

Two main causes of business failure are lack of management expertise and lack of sufficient money

• True

• False