Conditions That Prevent New Companies from Setting Foot in an Industry

question 51

Multiple Choice

Conditions that prevent new companies from setting foot in an industry are known as _____.

• A) demographics
• B) industry shakeouts
• C) scaffolding
• D) zero-profit conditions
• E) barriers to entry

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Definitions:

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, person, or group compared with another, often in a way considered to be unfair.

Journalizing

The process of recording a transaction entry into the journal.

Business Transactions

Financial activities or exchanges involving the transfer of value between entities or parties, affecting the financial position of a business.

Journal

A listing of business transactions in chronological order. The journal links on one page the debit and credit parts of transactions. Alternatively known as general journal.