The Factors That Lead to a Low-Cost Position Also Provide

question 26

Multiple Choice

The factors that lead to a low-cost position also provide a substantial ________ barriers position with respect to ________ products introduced by new and existing competitors.

• A) entry; substitute
• B) exit; primary
• C) product; substitute
• D) entry; primary

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Definitions:

Investment

The process of distributing funds or resources in anticipation of earning profits or income.

Profitable

A financial status indicating that the revenue of an entity is greater than its expenditures over a specified period, resulting in a net gain.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of a company.

Short-term Liabilities

Financial obligations of a business that are due to be settled within one year, such as accounts payable, short-term debts, and accrued expenses.