1. a. b. c. d. e. What might cause an industry's sales to decline? Changes in consumer tastes Product obsolescence Growth of substitute products Changes in company leadership A, B and C 2. Which of the following stage is probably longest phase in the industry life cycle? Pioneering development Rapidly accelerating growth Mature growth d. Stabilization and market maturity Deceleration of growth and decline a. b. C. e. 3. Which of the following are characteristics of the "decline" phase of the industry life cycle? 1 Little product differentiation II Substantial manufacturing overcapacity III Many competitors IV Falling prices a. I & II b. I, II, III c. I, II, IV d. I, II, III, and IV e. II, III, IV 4. A decrease in any of the following will cause the expected dividend growth rate to decrease for an industry except a. Profit margin b. Total asset turnover c. Return on equity d. Dividend payout ratio c. Financial leverage