Costs That an Early Entrant Has to Bear That a Later

question 89

Multiple Choice

Costs that an early entrant has to bear that a later entrant can avoid are known as

• A) first-mover costs.
• B) late-mover disadvantages.
• C) pioneering costs.
• D) licensing fees.

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Definitions:

Foreign Corporation

A company that is incorporated in a country outside of where it operates or conducts its business.

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Consolidated Income Tax Return

A single income tax return filed by a parent company and its subsidiaries, considered as one entity for tax purposes.

Intra-entity Transfers

Transfers of goods, services, or assets between divisions or units within the same company.