Question 1
The rapid expansion phase of an industry is characterized by
◦ extreme sensitivity to interest rates and other economic factors.
◦ high returns and relatively low risks.
◦ willingness of investors to buy almost any stock associated with the industry.
◦ many decades of sustained above average growth.
Question 2
Well managed companies rarely reach the decline stage because
◦ the world's population is growing.
◦ they continuously develop new products to meet the needs of changing markets.
◦ consumers remain loyal to established brands.
◦ All of these.