Which of the Following Is an Advantage of Being a Later

question 18

Multiple Choice

Which of the following is an advantage of being a later entrant into a market?

• A) Firms can capture scarce resources.
• B) Firms do not have to invest in exploratory research.
• C) Firms have to develop their own supply and distribution channels.
• D) Firms are unaffected by switching costs.

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Definitions:

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business operation.

Foreign Subsidiary

A company that is owned or controlled by another company, known as the parent company, but operates in a country different from where the parent company is established.

Franchising

The payment of a fee to a foreign business for rights to locally operate using its name, branding, and methods.

Strategic Alliance

A collaborative effort among two or more corporations to achieve specific targets, while continuing to operate as independent entities.