Ash Is the Preferred Wood to Be Used in the Production

question 36

Multiple Choice

Ash is the preferred wood to be used in the production of baseball bats.If a company were to buy the rights to harvesting the ash trees out of all the forests in North America,which of the following barriers of entry has this company created?

• A) control of resources
• B) problems raising capital
• C) economies of scale
• D) licensing
• E) patents and copyright law

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Definitions:

Second Year

Refers to the second year in a multi-year analysis, project, or financial statement reporting period.

Ordinary Repairs

Routine maintenance expenditures necessary to keep an asset in operating condition without significantly enhancing its life or value.

Useful Life

The estimated period that an asset is expected to be useful in the operations of a business.

Operating Condition

Conditions or aspects related to the daily functionality and management of a business's core activities.