Financial ManagementQuestion 5506 of 217
All Questions

9. The business through private airways is at which phase of product life cycle?

Options

AIntroduction
BGrowth
CMaturity
DDecline
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option DDecline

All Options:

  • AIntroduction
  • BGrowth
  • CMaturity
  • DDecline

Ad

Detailed Solution & Explanation

According to the Product Life Cycle (PLC) concept, a product or service progresses through four primary stages: Introduction, Growth, Maturity, and Decline.

* In Case Scenario - III, it is explicitly noted that: *"However, there is a sharp decline in business through airways as sales and profits have declined steeply."*
* A sharp and continuous fall in sales volume and profits is the defining economic characteristic of the **Decline** phase of the Product Life Cycle.
* During this stage, alternative options (such as advanced road logistics in PNL's case), changing dynamics, or intense cost competition lead to obsolescence and shrinkage of market share.

Hence, **Option D** is the correct answer.

More Questions from Financial Management

Ready to Master Financial Management?

Practice all 217 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free