BFN3104

Chapter 13
Questions
1.

What is product life cycle?

The product life cycle (PLC) model may be used to describe the separate stages in the
development of a product.

2.

What is business life cycle?

The business life cycle (BLC) may be used as a framework describing the separate
stages in the development and growth of a company.

3.

Briefly describe the Boston Consulting Group (BCG) matrix.

The Boston Consulting Group (BCG) matrix may be used in a similar way to the PLC
to assess the strategic financial implications at each stage in the development of a
business and its products and services.

4.

What is the relationship between business risk and financial risk?

Level of business risk and financial risk faced by companies change throughout the
different stages in their life cycles and there is an inverse correlation between these
two types of risk, which together comprise systematic or market risk.

KT/09/T1