What Are the Three Main Barriers to Entry

question 36

Multiple Choice

What are the three main barriers to entry?

• A) Fear of competition, brand loyalty, demand conditions
• B) Brand loyalty, absolute cost advantages, economies of scale
• C) Lack of opportunity, cost advantages, economies of scale
• D) None of the above

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Definitions:

Significant Influence

The capacity of an investor to participate in the financial and operating policy decisions of an investee without controlling those decisions.

Statement Of Income

A financial document that summarizes a company's revenues, expenses, and profits over a specific period, typically a quarter or year.

Realized Gains

Profits earned from the sale of assets or investments when they are actually sold, as opposed to when they increase in value on paper.

Amortized Cost

The initial measurement of a financial asset or liability, adjusted for repayments of principal, accumulation of interest, and any loss in value.