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?

• Start-up

• Growth

• Maturity

• Post-maturity

• Seed

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

• Maturity

• Post-maturity

• Seed

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

• Growth

• Maturity

• Start-up

• Post-Maturity

• Seed

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

• Start-up

• Growth

• Maturity

• Post-Maturity

• Seed

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

• Start-up

• Seed

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

• Start-up

• Growth

• Maturity

• Post-maturity

• Seed

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

• Start-up

• Growth

• Maturity

• Post-Maturity

• Seed

The form of business cessation for sole traders and partnerships is

• administration

• bankruptcy

• cessationarisation

• liquidation

This occurs when an independent administrator is appointed to operate the business in the hope of trading out of the present financial problems

• Voluntary bankruptcy

• Voluntary liquidation

• Voluntary administration

• Voluntary realisation