When a product reaches the decline stage of the product life cycle, a firm has two choices. one choice involves product deletion, where a product is dropped from a firm's product line. another less drastic choice is to retain the product in the product line, but to reduce marketing costs. when this option called is selected, advertising expenditures for the product are reduced and salespeople do not devote their efforts to selling the product.

a. decline maintenance
b. customer need maintenance
c. divestment
d. maturity re-development
e. harvesting

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.