Describe the business life cycle. What will be an ideal response?

QUESTION

Describe the business life cycle.

What will be an ideal response?

ANSWER

There are four stages. In the introductory stage, new products are presented and companies focus on creating brand awareness. Sales begin to increase at a steady pace during the growth stage and other businesses enter the market. In the maturity, sales rise and earnings grow. As sales go down, the product enters the decline stage, where little more investment is made in the product. The company may leave the market at some point in time.