- CFA Exams
- CFA Level I Exam
- Study Session 13. Equity Investments (2)
- Reading 40. Introduction to Industry and Company Analysis
- Subject 4. Principles of Strategic Analysis
CFA Practice Question
The decline phase in the industry life cycle is characterized by ______.
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
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 |