Which One of the Following Does NOT Intensify the Competitive

question 105

Multiple Choice

Which one of the following does NOT intensify the competitive pressures associated with the threat of entry?

• A) When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers
• B) When industry members are struggling to earn good profits
• C) When entry barriers are relatively low and buyer demand for the product is growing fairly rapidly
• D) When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence
• E) When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist

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Definitions:

Days' Sales in Inventory

A financial metric that measures the average number of days it takes for a company to sell its entire inventory during a given period.

Consignee

The individual or entity to whom goods are shipped to be sold on behalf of the owner, retaining no legal ownership until sales occur.

Expense Recognition Principle

An accounting principle that dictates that expenses should be recognized in the period in which they are incurred to generate revenues, matching expenses against revenues in the period in which the revenue was earned.

Specific Identification

A method of inventory valuation that identifies and assigns cost to individual inventory items, suitable for unique or expensive products.