Switching Costs, Access to Distribution Channels, Economies of Scale, Large

question 125

True/False

Switching costs, access to distribution channels, economies of scale, large numbers of competing firms, and slow industry growth are some of the entry barriers that may affect the threat of new entrants to an industry.

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Definitions:

Year-End Assets

Year-End Assets refer to the total value of all assets that a company or individual owns at the end of a fiscal year.

Net Asset Value

The total value of all the assets held by an investment fund or company, minus any liabilities, typically expressed on a per-share basis for mutual funds and ETFs.

Dividend Income Distributions

Payments made to shareholders from a fund's income derived from dividends on stocks that it owns, typically made on a regular basis.

Capital Gains

The profit from the sale of an asset or investment above its purchase price.