Which of the Following Allows a Business the Potential to Own

question 60

Multiple Choice

Which of the following allows a business the potential to own the market until other competitors venture to enter?

• A)a decentralization strategy
• B)the cluster effect
• C)a low barrier to entry
• D)a first-mover advantage
• E)a network effect

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Definitions:

Lessor

The owner of a property or asset that is rented or leased to another party, known as the lessee.

Financial Leverage

The use of borrowed funds to increase the potential return on investment, while also increasing the potential risk.

Leasing

A financial agreement in which one party (the lessor) grants another party (the lessee) the right to use an asset for a specified period in exchange for periodic payments.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.