A New Entrant to the Business Copier Field Will Have

question 7

Multiple Choice

A new entrant to the business copier field will have to find and motivate dealers to add another model to their assortment or develop their own distribution and sales system.This is a barrier to entry derived from:

• A) Economies of scale
• B) Cost disadvantages unrelated to size
• C) Government policy
• D) Product differentiation
• E) Access to distribution channels

---

Definitions:

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the company.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Fixed Asset Account

An account on a company’s balance sheet that reports the cost and accumulated depreciation of assets with a useful life of more than one year.

Accumulated Depreciation

Accumulated Depreciation is the total amount of depreciation expense that has been recorded for an asset over its useful life, indicating the amount of value the asset has lost over time.