Which of the Following Is Not an Advantage of a Small-Scale

question 44

Multiple Choice

Which of the following is not an advantage of a small-scale entry?

• A)A small-scale entrant is more likely to be able to capture first-mover advantages associated with demand preemption,scale economies,and switching costs.
• B)Small-scale entry is a way to gather information about a foreign market before deciding how best to enter.
• C)By giving the firm time to collect information,small-scale entry reduces the risks associated with a subsequent large-scale entry.
• D)Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market.

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Definitions:

Term

In finance, refers to the length of time until a financial contract expires. In other contexts, it can mean a specific period or duration.

Secondary Capital Market

The financial market where investors buy and sell securities they already own, as opposed to the primary market where securities are issued for the first time.

10-Year Bond

A long-term debt security issued by governments or corporations with a maturity of ten years.

Transaction

The act of conducting a trade or business deal involving the exchange of goods, services, or financial assets.