Which One of the Following Increases the Competitive Pressures Associated

question 27

Multiple Choice

Which one of the following increases the competitive pressures associated with the threat of entry?

• A) When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers
• B) When buyers have a high degree of loyalty to the brands and product offerings of existing industry members
• C) When buyer demand for the product is growing fairly slowly
• D) When few outsiders have the expertise and resources to hurdle whatever entry barriers exist
• E) When newcomers can expect to earn attractive profits

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Definitions:

Funded Status

The financial status of a pension plan, usually indicating the extent to which assets cover liabilities.

Past Service Cost

The cost of additional retirement benefits awarded for an employee's service in prior periods, typically arising from plan amendments.

Service Cost

The portion of the projected pension benefit that is attributed to employee's service in the current year, often used in accounting for pension expenses.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated based on a formula considering factors like salary history and duration of employment, with the employer bearing the investment risk.