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

25 days 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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Maurine

1 days ago

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

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Annabelle

26 days 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

27 days 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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Leonor

19 days 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

1 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

8 days ago

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

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Samuel

22 days ago

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

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Shanda

27 days ago

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

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Juan

1 months ago

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

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Aja

9 days ago

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

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Ben

21 days ago

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

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Gennie

1 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

2 months ago

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

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