Question

Stages of growth are

• A. Birth stage
• B. Development stage
• C. Extension stage
• D. All of these

Hint:

Think of a business life cycle like a human life cycle: Birth (Introduction), Growth (Development), Adulthood (Maturity/Extension), and Old Age (Decline). This analogy helps in remembering the stages.

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
The question asks to identify the stages of growth, which typically refers to the life cycle of a business or a product.
Step 2: Key Concept:
The Business Life Cycle or Product Life Cycle model describes the various stages a business or product goes through from its inception to its eventual decline. While models may vary slightly in terminology, they follow a common pattern.
Step 3: Detailed Explanation:
The common stages of a business/product life cycle are:

Introduction / Birth Stage: The business or product is launched. Sales are low, costs are high, and profits are often negative. This corresponds to option (A).

Growth / Development Stage: The product gains market acceptance. Sales and profits grow rapidly. This corresponds to option (B).

Maturity / Extension Stage: Sales growth slows down as the market becomes saturated. The focus shifts to maintaining market share and extending the product's life. This corresponds to option (C).

Decline Stage: Sales and profits begin to fall as the product becomes obsolete or faces increased competition.

Since all the given options—Birth stage, Development stage, and Extension stage—represent recognized phases in a growth cycle, they are all correct.
Step 4: Final Answer:
The most appropriate answer is (D) All of these, as it includes all the listed valid stages of growth.