Question

Alex’s business is experiencing diminishing market shares and no longer needs any external finance. In fact, it is trying to buy back its stock and pay off its debts. At which stage is Alex’s business in?

1. seed stage
2. startup stage
3. expansion stage
4. decline stage

Answer 1

decline stage

Step-by-step explanation:

In this stage the company has already took the benefits of issuing stocks as a way of funding. Had managed to make great investments, alliances, projects, that lead to a powerful market position. Then, having their stocks shared with lots of stakeholders is more a burden than a blessing. For this reason, they prefer to consolidate the control of the company as they don’t see valuable opportunities in the future market scenarios.