Financial ManagementQuestion 5557 of 217
All Questions

10. In context to service in transportation through railways, the company is analyzing a relationship between volume of business on one axis with respect to time on another axis. As per Product Life Cycle (PLC), which stage this service is passing through:

Options

AIntroduction
BMaturity
CGrowth
DDecline
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option BMaturity

All Options:

  • AIntroduction
  • BMaturity
  • CGrowth
  • DDecline

Ad

Detailed Solution & Explanation

Correct Answer: Option **B** Explanation: The Product Life Cycle (PLC) consists of four distinct stages: Introduction, Growth, Maturity, and Decline.
Based on the details provided in Case Scenario 2 regarding transportation through railways:
1. "Growth rate is slow."
2. "Market for areas being covered by this means of transport is by and large stabilized."
3. "Profit margin is coming down due to stiff competition."
4. "Company has to work out an action plan to maintain the stability."
These features (stabilized market demand, intense competition, pressure on profit margins, and slow growth) are typical indicators of a product or service that has reached its **Maturity** stage. During this stage, the focus is on maintaining market stability and defending market share against competitors.
Hence, **Option B** 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