What Are Barriers to Entry? Describe in Brief the Three

question 87

Essay

What are barriers to entry? Describe in brief the three main sources from which barriers to entry result.

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Definitions:

Liability

Financial obligations or debts that an entity is legally required to repay in the future.

Company

A business entity created by a collection of people to conduct and manage an enterprise, whether it be for commercial or industrial purposes.

Par Common Stock

The nominal or face value of a share of common stock as stated in the corporate charter, with no direct link to the market value.

Articles Of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.