Which of the Following Is Not an Example of a Barrier

question 530

Multiple Choice

Which of the following is not an example of a barrier to entry?

• A)John owns the only parcel of lakeside property with a beach that is safe for swimming. He charges admission to neighbors who want to use the beach.
• B)Jackie owns the copyright to a popular song. She receives royalties every time a radio station plays her song.
• C)John Jr. owns the best seafood restaurant in a popular resort area. He charges high prices because the quality of the food is so good.
• D)Caroline owns the patent for a new running shoe. She receives payments from the company who manufactures the shoes.

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Definitions:

Consideration Transferred

The payment made by an acquiring entity to purchase another entity, which can be in the form of cash, assets, or other financial instruments.

Book Value

The net value of a company’s assets as recorded on its balance sheet, which is calculated by subtracting total liabilities from total assets.

Indefinite Life

Indefinite life refers to the characteristic of an intangible asset that does not have a foreseeable limit to the period over which it is expected to generate economic benefits for its owner.

Consolidated Balance Sheet

A financial statement showing the aggregated financial position of a parent company and its subsidiaries.