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:

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business operation.

Foreign Subsidiary

A company that is owned or controlled by another company, known as the parent company, but operates in a country different from where the parent company is established.

Franchising

The payment of a fee to a foreign business for rights to locally operate using its name, branding, and methods.

Strategic Alliance

A collaborative effort among two or more corporations to achieve specific targets, while continuing to operate as independent entities.