Which of the Following Statements Best Defines a Barrier to Entry

question 23

Multiple Choice

Which of the following statements best defines a barrier to entry?

• A) A barrier to entry is anything that stops a firm not currently operating in an industry from joining that industry.
• B) A barrier to entry is anything that stops an organisation from moving from one strategic group to another.
• C) A barrier to entry is anything that stops a firm in the industry developing a new product for a market segment not currently served.
• D) A barrier to entry is anything that makes an identified market segment unattractive to firms.

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Definitions:

Insanity

A legal defense claiming that a defendant was unable to understand the nature of their actions or distinguish right from wrong due to mental illness at the time of their crime.

Voidable Contract

An agreement that has legal effect but that one of the parties has the option to end.

Mental Faculties

The cognitive functions of the mind, including perception, reasoning, intuition, and memory.

Mental Defect

A term previously used to describe a variety of mental disabilities or disorders, now considered outdated and insensitive. The modern usage advocates for specific diagnoses or conditions.