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vredina [299]
3 years ago
14

Potential competitors may enter an industry and begin to take market share from existing companies. What would be one of the lar

gest challenges a new entrant would need to overcome to be successful when entering the industry?
Business
1 answer:
ludmilkaskok [199]3 years ago
8 0

Production costs are high and require high volumes to achieve profitability.

<h3><u>Explanation:</u></h3>

One of the largest challenges that will be faced by the potential competitors when they try to enter an industry will be that they will face that cost of production will be higher and they would require higher volumes for achieving profits. When a company is new to an industry there will be competitors who are already established well on that particular industry.

The challenges and the opportunity that are in existence will be well known to the existing competitors. They already have buyers and suppliers chain. Hence, the new entrant will have higher production cost and also they require higher volumes to achieve profits.

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An investor invests $4,000 to buy 200 shares of Sand Corporation, which has an expected return of 24%; $2,000 to buy 100 shares
Anni [7]

Answer:

Expected return = 28%

Explanation:

given data

invests $4,000

share = 200

return = 24%

and

invests = $2000

share = 100

return = 18%

and

invest = $4,000

share = 400

return = 28%

to find out

expected return on this portfolio

solution

we know total investment is

Total investment = 4000+2000+4000

Total investment = 10000

and

Wt. of Sand Corporation shares in the total portfolio= \frac{4000}{10000} =  0.4

Wt. of Water Corporation shares in the total portfolio=\frac{2000}{10000} =  0.2

Wt. of Beach Corporation shares in the total portfolio=\frac{4000}{10000} =  0.4

and

Expected return on the given portfolio is

Expected return = 0.4 × 24% + 0.4 × 18% + 0.4 × 28%

Expected return = 28%

5 0
3 years ago
Loggers are much likely to supply wood to the market if property rights are enforced. In the presence of market failures, public
alekssr [168]

Answer:

much <em>more </em>likely;

There is only one car dealership in a small town, giving the dealership the ability to influence the price of cars. - <em>Market power</em>

A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. - <em>Externality</em>

Explanation:

<u>Property rights</u> are an incentive for individuals to create goods that are needed on the market. In other words, when a discrepancy between demand and supply occurs on a specific market, entities, businesses or individuals that create the goods are motivated to meet market needs through enforced property rights.

On the other hand, when there is a lack of property rights that regulate the market, <em>market failures</em> occur. Two common types of market failures include <em>market power</em> and <em>externalities</em>.

The car dealership example shows <u>market power</u> in practice, as the reigning company can dictate car prices.

The second example shows an externality, as there is evident influence (cost or benefit) on the third party, which they cannot change. People are affected (negatively) by smoke they did not create.

5 0
3 years ago
. General Motors is considering increasing the length of its bumper-to-bumper warranty on new vehicles from 3 years to 5 years.
Otrada [13]

Answer: the answer is B

Explanation:

3 0
2 years ago
Measuring business activities and reporting those measurements to external parties is the function of ______ accounting.
Andru [333]

Answer:

Financial

Explanation:

Basically, there are two forms of accounting for measuring business activities namely; Financial accounting and Management accounting.

Financial accounting involves the measurement of the business activities over a period using a defined framework or standard such as US GAAP, IFRS, etc. This is usually presented in a form of statements called the financial statements and is used by internal and external stakeholders such as Government, creditors, shareholders etc.

Management account is usually prepared for management purposes and measures the company's actual activities against the budget or plan.

The right answer is financial accounting.

3 0
3 years ago
The term ___________________ describes the proportion of deposits that the bankmust hold in the form of reserves that are not lo
antoniya [11.8K]

Answer:

reserve ratio

Explanation:

3 0
3 years ago
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