When Is Reputation a Most Effective Entry Barrier

question 11

Multiple Choice

When is reputation a most effective entry barrier?

• A)When the incumbent has incurred them and the entrant has not
• B)When incumbents have long-standing relationships with suppliers and customers
• C)When channels are few and hard to replicate
• D)When a firm has a reputation for toughness or competes in multiple markets
• E)When marginal costs are low and flooding the market causes large price reductions

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Definitions:

Physical Inventory

A detailed listing of merchandise on hand.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory Account

An account that records the value of goods that a retailer, wholesaler, or distributor has available for sale to customers at any given time.

Specific Identification

An inventory costing method where individual costs are assigned to specific items of inventory, often used for unique or high-value items.