Common exit barriers include all the following EXCEPT:
A) investments in assets such as specific machines, equipment, or operating facilities that are of little or no value in alternative uses.
B) emotional attachments to an industry.
C) high fixed costs associated with leaving an industry.
D) bankruptcy regulations that keep unprofitable assets in the industry.
E) economic independence because a company is able to rely on a single industry for its entire revenue and all profits.

Question

Quizplus · Accepted Answer

Economic independence is actually a facilitator of exit rather than a barrier. It allows a company to leave an industry without suffering significant losses or damage. Therefore, all other options (A, B, C, and D) are common exit barriers, while E is not.

Common Exit Barriers Include All the Following EXCEPT