CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

The decline phase in the industry life cycle is characterized by ______.

I. shifting of demand to new products
II. margins that are below average in the economy
III. an industry trend line that corresponds to that of the general economy
IV. some companies failing, others exiting the industry to compete in other lines of business
V. uncertain industry growth
Correct Answer: I, II and IV

User Contributed Comments 2

User Comment
MasterD III) is false as decline in industry would produce lower than general economy returns.
V) is false as industry growth is pretty certain: none by definition.
2014 3 is not the choice in answer
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