Q203
Explosive growth cannot be maintained indefinitely. Sooner or later, the rate of growth slow and the industry enters the
A.
Embroynic stage
B.
Growth stage
C.
Shakeout stage
AnswerD.
Maturity stage
Answer: Option C
Solution
Answer: Option C
Solution:
Explosive growth cannot be maintained indefinitely. Sooner or later, the rate of growth slow and the industry enters the Shakeout stage. Shakeout usually refers to the consolidation of an industry. Some businesses are naturally eliminated because they are unable to grow along with the industry or are still generating negative cash flows.