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Justify a reason either for or against each of the following : 

(a) Introduction Stage in a Product Life Cycle is not very risky.

(b) Accounts should disclose all material information (with reference to the concept of accounting). 

(c) Recruitment is a process of elimination. 

(d) Branded goods are normally sold by inspection.

(e) Training reduces employee absenteeism.

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(a) Introduction stage in a Product Life Cycle is very risky. It is the stage when product is launched for the first time in the market. It takes time for product to settle in the market and become readily acceptable to consumers. The sales and profit related to the product are, therefore, low. Competition is virtually absent, market is limited, prices are relatively high and little is known about the product innovation. Growth in sales volume is at a low rate due to lack of knowledge on the part of consumers and limited distribution. Prices are usually high because of small scale of production and heavy promotional expenditure. There is high probable rate of product failure. Therefore, it is wrong to say that introduction stage in a Product Life Cycle is not very risky. 

(b) Accounts should disclose all material information. The reasons for this disclosures are reporting on financial statements. 

1. Everyone can understand the reporting on the financial statements relating to the economic affairs of the firm. 

2. A thorough understanding of the change in the method of depreciation or method of valuation of stock, market value of investments and contingent liability. 

(c) Recruitment is not a process of elimination because recruitment is the process of searching for and identifying the prospective employees and encouraging them to apply for jobs in the enterprise. It involves seeking and attracting adequately qualified people from which suitable candidates can be selected. 

(d) No, Branded products/goods are not sold by inspection. These goods are sold by there trademark, brand name etc. A brand is a name, term, symbol or design or a combination thereof used to identify the goods and services of a seller and to differentiate them from those of competitors. For example, Lux Soap, Colgate toothpaste, Titan Watches. These all products are sold with there brand names. 

(e) Training reduces employee absenteeism : Yes, it is true. Training reduces employee absenteeism as trained employees feel more satisfied and interested in doing their jobs. Effective training improves the selfconfidence and job satisfaction of employees. They take greater interest in their work and feel a sense of security which reduces labour turnover and absenteeism.

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