The ability to exit a business relatively easily tends to increase the threat posed by a new entry.

Name: The ability to exit a business relatively easily tends to increase the threat posed by a new entry.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The ability to exit a business relatively easily actually decreases the threat of new entry because it suggests low barriers to exit, which often correlates with low barriers to entry, making the market more attractive to new entrants.

The Ability to Exit a Business Relatively Easily Tends to Increase