Definition of 'Growth Curve'
There are many different types of growth curves, but the most common is the S-curve. The S-curve starts out slowly, then accelerates as the company grows, and finally levels off as it reaches maturity.
The S-curve is a useful tool for understanding the growth of a company. It can help investors to identify companies that are in the early stages of growth and have the potential for high returns. It can also help companies to plan their growth and to make decisions about how to allocate resources.
Here are some of the key features of a growth curve:
* The growth rate is initially slow, but it accelerates as the company grows.
* The growth rate eventually levels off as the company reaches maturity.
* The shape of the curve can vary depending on the industry and the company's strategy.
* The growth curve can be used to forecast a company's future growth.
Growth curves are a valuable tool for understanding the growth of a company. They can help investors to identify companies with high potential and to make decisions about how to allocate resources.
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