American Bankers Association Exam CTFA Topic 1 Question 47 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 47
Topic #: 1

[All CTFA Questions]

Which of the following take place at the expansion stage of the industry life cycle?

AFirm operations get more stable and dependable

BNo rapid growth in demand

CCosts get stable rather than decreasing or increasing

DSales growth decline as new products are developed

Show Suggested Answer

Suggested Answer: D

by Felicidad at Apr 24, 2023, 09:39 PM

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Denny

1 months ago

Wait, is this a trick question? What if the correct answer is 'all of the above'? Kidding, I think I'll go with A.

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Susana

10 days ago

User 3: Yeah, that makes sense. A seems like the right choice.

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Twana

14 days ago

User 2: I agree, firm operations do get more stable and dependable at the expansion stage.

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Maurine

16 days ago

User 1: I think I'll go with A.

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Annabelle

1 months ago

Haha, I hope the industry doesn't 'expand' like my waistline during this stage! In all seriousness, I'm leaning towards B.

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Lai

1 months ago

D is an interesting option, but I think it's more characteristic of the decline stage. I'll have to go with C on this one.

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Minna

3 days ago

Yeah, I think option C is the best fit for the expansion stage. It's all about stability in costs during that period.

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Nickolas

15 days ago

I see your point. Option C does make sense for the expansion stage, as costs tend to stabilize during that phase.

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Leonor

1 months ago

I agree, option D does sound more like the decline stage. I think option C is the right choice for the expansion stage.

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Frank

2 months ago

I'm torn between A and C. The industry life cycle dictates that costs should stabilize during the expansion stage.

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Marsha

23 days ago

True, it's a tough choice between A and C.

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Samuel

1 months ago

But firm operations also become more stable and dependable during that time.

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Shanda

1 months ago

I think you're right, costs do tend to stabilize during the expansion stage.

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Juan

2 months ago

Option A seems the most logical choice here. As the industry matures, operations become more stable and reliable.

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Dahlia

2 days ago

True, but I think option A is more significant in terms of the expansion stage.

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Leah

3 days ago

But what about option C? Costs also tend to stabilize during this phase.

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France

14 days ago

I agree, option A makes sense. Operations tend to become more stable at the expansion stage.

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Ahmad

15 days ago

Definitely, stability in operations is key for long-term success in the expansion stage.

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Aja

24 days ago

I think option A is the best choice because it shows progress and maturity in the industry.

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Ben

1 months ago

Yes, stability in firm operations is crucial for growth and sustainability.

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Gennie

2 months ago

I agree, option A makes sense. Operations becoming more stable is a common characteristic of the expansion stage.

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Evangelina

2 months ago

I disagree, I believe the answer is C) Costs get stable rather than decreasing or increasing. This is because as the industry expands, costs tend to stabilize.

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Tora

2 months ago

I agree with Estrella, because at the expansion stage, firms tend to focus on stabilizing their operations.

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Estrella

3 months ago

I think the answer is A) Firm operations get more stable and dependable.

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