Which of the Following Is True of the Scale of Entry

question 116

Multiple Choice

Which of the following is true of the scale of entry into a foreign market for an international firm considering foreign expansion?

• A) Small-scale entrants are more likely to capture first-mover advantages.
• B) Small-scale entry does not allow a firm to learn about a foreign market.
• C) Large-scale entrants are more likely to capture first-mover advantages.
• D) Large-scale entrants are more likely to avoid pioneering costs.
• E) Small-scale entrants are more prone to risks than large-scale entrants.

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Definitions:

Break-Even Point

The point at which total costs equal total revenues, indicating that a business is neither making a profit nor incurring a loss.

Contribution Margin Ratio

The contribution margin ratio is a financial metric indicating the proportion of sales revenue that exceeds variable costs and is available to cover fixed costs and generate profit.

Fixed Costs

Outlays for rent, salaries, and insurance that are unaffected by variations in the volume of production or sales.

Sales Dollars

A term referring to the total revenue generated from the sale of goods or services, expressed in monetary value.