Question

Given a typical business life cycle, increasing competition for customers will lead to mergers, acquisitions and bankruptcies among firms in the market. This situation is characteristic of…. Group of answer choices the introductory or embryonic stage, or phase, of the business life cycle the growth stage, or phase, of the business life cycle the tertiary stage, or phase, of the business life cycle the mature stage, or phase, of the business life cycle the shakeout stage, or phase, of the business life cycle

Answer 1

Increasing competition that leads to mergers, acquisitions, and bankruptcies among firms is characteristic of the shakeout stage of the business life cycle, where market saturation leads to intensified competition. The correct answer is option e.

Step-by-step explanation:

In the context of a business life cycle, increasing competition for customers that leads to mergers, acquisitions, and bankruptcies among firms in the market is characteristic of the shakeout stage, or phase, of the business life cycle. During this stage, market saturation leads to intensified competition and weaker firms are often pushed out of the market, leading to consolidation via mergers and acquisitions, or they face bankruptcy if unable to compete effectively. It is not uncommon for antitrust laws to play a role in this phase to ensure continued competition and prevent monopolies.