The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. When a product matures,
a. operations generate positive cash flow, enough to finance expenditures on property, plant, and equipment.
b. firms use the excess cash flow to repay borrowing from the introduction and growth phases and to begin paying dividends to shareholders.
c. capital expenditures usually maintain, rather than increase, productive capacity.
d. all of the above
e. none of the above
D
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A) the instant acceptance of the brand by viewers B) the acceptance of the brand by the actors in the show or movie C) the endorsement of the brand by the actors in the show or movie D) the low cost-per-viewer
Place utility refers to the availability of a product or service when desired by a customer
Indicate whether the statement is true or false
Which of the following is an irrelevant cost in deciding whether or not to eliminate a producing department?
A) The current residual value of the department's equipment B) The salary of a supervisor who would be laid off C) The carrying value of the department's equipment D) Revenue that could be generated by renting out the department's space
The Internet is a more appropriate direct marketing medium for life cycle marketing than direct-response advertising is
Indicate whether the statement is true or false