Final answer:
The introductory stage of the industry life cycle is a capital-intensive process where firms focus on raising financial capital to fund their operations without yet having a proven profit history. The correct option is D. Capital
Step-by-step explanation:
The introductory stage of the industry life cycle is a capital-intensive process. During this early stage, firms often have a concept or a prototype of their product or service and are seeking to enter the market. At this point, they usually have few, if any, customers and are not yet turning a profit.
The challenge for these firms is to raise enough financial capital to fund their operations and growth, despite not having a proven track record of profitability.
This difficulty arises because, without profits, it's hard to attract investors and pay them a return on their investment. Plus, establishing a well-respected brand name and achieving economies of scale can also be resource-intensive endeavors during this stage. The correct option is D. Capital