Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered to be ________ in the five forces framework.
A) barriers to entry
B) new entrants
C) suppliers
D) buyers

Question

Quizplus · Accepted Answer

The correct term for firms that have recently begun or threaten to begin operations in an industry is "new entrants". They are an important force to consider in the five forces framework as they can impact the level of competition and profitability of existing firms in the industry. The other options, barriers to entry, suppliers, and buyers, are other key players in the industry but do not refer to new firms entering the market.

Firms That Have Either Recently Begun Operations in an Industry