Imagine You Are Creating a New Product to Sell in an Up-And-Coming

question 60

Multiple Choice

Imagine you are creating a new product to sell in an up-and-coming market.Which of the following statements indicates that it would be easy for you as the new entrants to compete in this market?

• A)The threat of new entrants force is high in the up-and-coming market.
• B)The threat of new entrants force is low in the up-and-coming market.
• C)The threat of new entrants force is impossible to define in the up-and-coming market.
• D)All of these, depending on the time of year.

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Definitions:

Unearned Revenue

money received by an entity for a service or product to be delivered or performed in the future.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Debt-to-Equity

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

Receivable Turnover Ratio

A financial metric used to measure how efficiently a company uses its assets by calculating how many times a company can turn its accounts receivable into cash within a period.