Fragmented Industries Are More Receptive to New Entrants Than Industries

question 63

True/False

Fragmented industries are more receptive to new entrants than industries that are dominated by a handful of large firms.

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another business for more than the value of its tangible and identifiable intangible assets.

Fixed Assets

Long-term tangible assets that a company uses in its operations and that are not expected to be consumed or converted into cash within one year.

Long-Term Debt

Represents loans and financial obligations lasting over one year that a company owes and is recorded on its balance sheet.

Synergy Value

The potential additional value generated from combining two companies, often expected from cost savings or by achieving higher revenues.