ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Many people consider the first stage of a business’ life cycle to be the riskiest. In fact, only about 80% of startups with employees survive the first year, according to the U.S. Bureau of Labor Statistics. There are many reasons why businesses fail.

Detailed explanation-2: -There are three startup stages: early-stage, venture-funded (growth) stage and late stage. Moving from early-stage to venture-funded (growth) stage is well delineated, but other phases are only loosely defined. Knowing where you are along the continuum helps you anticipate what’s coming next and prepare accordingly.

Detailed explanation-3: -The first stage in the business cycle is expansion. In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.

Detailed explanation-4: -Every business goes through four phases of a life cycle: startup, growth, maturity and renewal/rebirth or decline. Understanding what phase you are in can make a huge difference in the strategic planning and operations of your business.

Detailed explanation-5: -The product life cycle is the progression of a product through 5 distinct stages-development, introduction, growth, maturity, and decline. The concept was developed by German economist Theodore Levitt, who published his Product Life Cycle model in the Harvard Business Review in 1965.