Which stage of the business life cycle is best described as the phase where a company experiences rapid growth in sales and begins to expand its operations?

• A. Decline stage
• B. Maturity stage
• C. Startup stage
• D. Growth stage

Answer: (D)

Verified step by step guidance

1. Understand the concept of the business life cycle, which includes stages such as startup, growth, maturity, and decline. Each stage represents a different phase in a company's development.
2. Recognize that the growth stage is characterized by rapid increases in sales, market share, and customer base. Companies in this stage often expand their operations, invest in new markets, and scale their production or services.
3. Compare the characteristics of the growth stage with other stages: the startup stage involves initial development and market entry, the maturity stage involves stable sales and market saturation, and the decline stage involves reduced sales and market relevance.
4. Identify key indicators of the growth stage, such as increased revenue, hiring more employees, opening new locations, or launching new products/services.
5. Conclude that the growth stage is the correct answer because it aligns with the description of rapid sales growth and operational expansion provided in the problem.