There Are Four Factors That Determine the Threat of New

question 27

True/False

There are four factors that determine the threat of new entrants: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs.

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets.

Fair Values

The monetary amount expected from selling an asset or required to cover a liability, in a well-organized deal among market stakeholders, at the time of assessment.

Control

The power to govern the financial and operating policies of an organization so as to obtain benefits from its activities.

Investee

A company or entity in which an investor holds an interest, typically through ownership of shares.