Which of the Following Is the Best Barrier to Entry

question 21

Multiple Choice

Which of the following is the best barrier to entry against future competitors?

• A) Product price cuts
• B) Unique product features
• C) Highly fragmented wholesalers
• D) Effective distribution networks
• E) High-functioning logistical services

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Definitions:

Expensed

Costs or charges incurred during a specific period that are recorded immediately against revenues, reducing profit.

Depreciable Amount

The cost of a tangible or intangible asset, less its salvage value, over which the cost is systematically allocated over its useful life.

Residual Value

is the estimated value that an asset will retain at the end of its useful life.

Property, Plant & Equipment

Tangible long-lived assets owned by a business for the purpose of producing goods or services and not intended for sale during the normal course of business.