More Companies Fail for the Lack of ________ Than for the Lack

question 110

Multiple Choice

More companies fail for the lack of ________ than for the lack of ________.

• A)cash; profit
• B)profit; cash
• C)net revenue; gross revenue
• D)vision; profit

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Definitions:

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs or complex regulations.

Natural Monopoly

A situation in the market where due to high initial costs and substantial economies of scale, a single firm can supply a product or service at a lower cost than any potential competitor, leading to a market dominated by one supplier.

Network Effects

Increases in the value of a product to each user, including existing users, as the total number of users rises.

Rent-seeking Behavior

Activities undertaken by individuals or firms to increase their own wealth without creating new wealth, often through manipulating the social or political environment in which economic activities occur.