High Exit Barriers Can Cause a Company to Remain in an Industry

question 28

True/False

High exit barriers can cause a company to remain in an industry even though the returns on its invested capital are low or negative.

---

Definitions:

Level II

This term lacks specific context but could refer to a secondary or intermediate stage or level in various hierarchical or classification systems.

Stage 3

Depending on the context, this refers to the third phase or level in a specific process or development model.

Approval

the act of officially agreeing to something or recognizing it as acceptable, valid, or conforming to a standard.

Socialization

The process by which individuals learn and adopt the norms, values, customs, and behaviors appropriate to their society or social group.