Although Large Investments in Technology Can Create Entry Barriers for Present

question 90

Short Answer

Although large investments in technology can create entry barriers for present or prospective players in an industry, the barriers can evaporate over time as competitors employ the new technologies. This is an example of IT becoming a competitive _______________.

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Definitions:

Accrued Interest

Interest that has been earned but not yet received or paid out, often relevant in bond investments and loans.

Interest Days

Refers to the days over which interest is calculated on a loan or financial instrument.

Conversion Ratio

In finance, it is the number of shares a holder can obtain by converting a convertible security into common stock.

Market Conversion Value

The value of a convertible security if it is converted into a specified number of shares of common stock, based on the current market price.