Potential Entrants May Change the Rule of Competition but Can

question 119

Essay

Potential entrants may change the rule of competition but can be deterred through _____.

---

Definitions:

Working Capital

The gap between an organization's current assets and its current liabilities, reflecting the business's short-term fiscal stability and operational effectiveness.

Salvage Value

The projected sales value of an asset at the termination of its effective life.

Financially Attractive

Describes opportunities or investments that are likely to provide a good return or prove to be profitable.

Discount Rate

The discount rate applied in DCF analysis to calculate the current value of future cash streams.