Question

Why would those reviewing a business plan want to know the life cycle of a product?

A. They would want to invest only in products with short life cycles.
B. To make sure that it was significantly different from the life cycle of similar products
C. A short life cycle for a product always means more customers for the business.
D. It helps set expectations about how often the customer will need the business.

Answer 1

D) It helps set expectations about how often the customer will need the business.

Answer 2

A business plan composes of many key components and one of this is the products and services. Therefore, when reviewing a business plan, the life cycle of the product is important because it would help establish expectations regarding how often the customer will need the business. The answer to this would be option D. Hope this helps.