Exit Barriers Are Obstacles That Determine How Easily a Firm

question 37

Multiple Choice

Exit barriers are obstacles that determine how easily a firm can leave the industry.When exit barriers are high,what happens to industry attractiveness?

• A) It decreases.
• B) It increases.
• C) It becomes a complement.
• D) It has no impact.

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Definitions:

Internal Rate Of Return

The discount rate at which the net present value of an investment project is zero; the rate of return of a project over its useful life.

Preference Ranking

A system or method used to arrange or prioritize options based on their desirability or value from a subjective viewpoint.

Investment Projects

Initiatives undertaken by businesses or individuals to allocate resources, often capital, with the expectation of generating future returns.

Incremental Annual Revenues

The additional revenues generated over a year from a particular action or decision, often considered in investment or project analysis.