Which of the Following Is True About New Entrants

question 36

Multiple Choice

Which of the following is true about new entrants?

• A)They have strong customer loyalty.
• B)They will have records on customers' purchase habits.
• C)They are yet to develop relationships with suppliers.
• D)They can lock in suppliers to gain a competitive advantage.

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Definitions:

Liabilities

Financial obligations or debts that a company or individual owes to others, which need to be settled over time by transferring economic benefits.

Closed-End Funds

A type of investment fund with a fixed number of shares, traded on the stock exchange, unlike open-end funds which continuously issue new shares.

Premium

The amount by which the price of a financial instrument, such as an insurance policy or bond, exceeds its face value or nominal cost.

NAV

Net Asset Value; the total value of a fund's assets minus its liabilities, often used in the context of mutual funds.