List the five active phases of a business life cycle as identified by the textbook. Do all business go through these five phases?
What will be an ideal response?
Answer:
1. The start-up phase of the business.
2. The growth phase of the business.
3. The maturity phase of the business.
4. The decline of the business.
5. The closing of the business.
All businesses do NOT go through all five phases; there can be overlap. Also, many businesses move through the first two phases of startup and growth and then settle for a long time into the mature stage. Others will start up and move rapidly to the final stage. The life-cycle approach provides a convenient classification of the timeline of a business, but it is not rigid.
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Answer the following statement true (T) or false (F)
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