Which of the Following Can Create a Barrier to Entry

question 16

Multiple Choice

Which of the following can create a barrier to entry?

• A) Small capital investment required
• B) Patents
• C) Minimal training needed
• D) Can be done from home
• E) Low labour costs

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Definitions:

Industry Average

A benchmark or average measurement of performance or financial metrics within a particular industry sector.

Insolvency

A financial state in which an entity can no longer meet its debt obligations, leading to legal consequences such as bankruptcy.

Market To Book Value

A financial ratio used to compare a company's current market price to its book value, indicating how much shareholders are paying for the net assets of a company.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a firm uses its equity to generate profit.