QUESTION: 29

What challenge is most likely faced by a business with low market share and high growth potential?

Its ability to generate profits is unknown.
It is in the worst market position and has insufficient resources to continue operations.
It is unclear how to best utilize the high cash flow to sustain growth.
Its excess resources are often used to develop other businesses that may not be mission-critical.

Answer(s): A

QUESTION: 30

The XYZ Company focuses on maintaining/increasing market share and its products tend to be more evolutionary than revolutionary.
What stage of the business lifecycle is XYZ most likely in?

Start-up
Growth
Mature
Decline

Answer(s): C

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QUESTION: 31

An organization whose focus is on obtaining capital, marketing products or services, sales growth and cash conservation is most likely to be in what stage of the business lifecycle?

Start-up
Growth
Mature
Decline

Answer(s): A

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QUESTION: 32

What choices are most commonly faced by companies in the decline phase of the business lifecycle?

Whether to improve productivity, obtain new operating capital or generate new sales growth
Whether to reinvest in existing products, create new products or maximize profits with current products as long as possible
Whether to acquire competitors with greater market share or merge with more successful companies
Whether to increase sales, maximize distribution capacity or increase efficiency to meet growing demand

Answer(s): B

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Free CECP Exam Braindumps (page: 8)

QUESTION: 29

QUESTION: 30

QUESTION: 31

QUESTION: 32