What Is First Mover Advantage

question 89

Multiple Choice

What is first mover advantage?

• A) The concept that the first in the market will make the most money
• B) The concept that a firm who exploits an opportunity before others has an advantage
• C) The concept that there is an advantage in leaving a market when it becomes flooded
• D) The concept that large organizations cannot take advantage of an opportunity as quickly as an entrepreneur
• E) The concept that there is more risk being first, but also more reward, if successful

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Definitions:

Minority Interest

An ownership stake in a company that is less than 50 percent, indicating that the investor does not have control over business operations.

Outstanding Stock

Shares of a company's stock that have been issued and are currently held by investors, including public shareholders and company insiders.

Parent

In financial terms, this refers to a parent company that owns enough voting stock in another company to control its operations and policies.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.