The Threat from New Entrants Is Greatest in the ____

question 39

Multiple Choice

The threat from new entrants is greatest in the ____ stage of the industry life cycle.

• A) embryonic
• B) growth
• C) shakeout
• D) maturity
• E) decline

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Definitions:

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, and protects them from being personally liable for the company's debts and obligations.

Thin Capitalization

In corporation law, a ground for piercing the corporate veil due to the shareholders’ contributing too little capital to the corporation in relation to its needs.

Nevada Corporation

A corporation chartered in the state of Nevada, often chosen for its favorable corporate laws and tax rules.