Which of the Following Is the Best Example of a Barrier

question 20

Multiple Choice

Which of the following is the best example of a barrier to entry created by a firm's incumbency advantages?

• A) A company with superior technology when compared to its competitors
• B) A company engaging in extensive advertising to gain consumer loyalty
• C) A company that is marked by overcrowded distribution channels
• D) A company which manufactures its products in high volumes

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Definitions:

Biggest Drawback

The most significant disadvantage or negative aspect of a situation, plan, or decision.

Classic Song

A timeless, enduring piece of music that has been widely accepted and is remembered beyond the era of its creation.

Nostalgia

A sentimental or wistful affection for the past, often for a period or place with happy personal associations.

Advertising Strategy

The plan by which a company intends to promote its products or services to reach a targeted audience and create demand.