Which One of the Following Does Not Intensify the Competitive

question 18

Multiple Choice

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

• A) Incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers.
• B) Industry members are struggling to earn good profits.
• C) Entry barriers are relatively low.
• D) 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) 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:

Creditworthiness

A valuation or assessment of an individual's or entity's ability to repay debts or meet financial obligations.

Repayment Patterns

The trends or habitual ways in which a borrower returns borrowed money to the lender, often analyzed in finance to assess risk and set terms.

Debt And Equity

The two main types of financing for companies, where debt involves borrowing money to be repaid and equity involves selling a stake in the company.

Capacity

The highest amount of production a business can maintain during a specific timeframe under regular conditions.