Which of the following statements supports the fact that Toy Track operates in a task environment with a low barrier to entry?
A)Toy Track has few competitors and faces no challenges from other organizations.
B)Toy Track is able to sell its products easily, even though they are overpriced.
C)The task environment within which Toy Track operates is expensive to enter.
D)The task environment within which Toy Truck operates is easy to enter.
E)Toy Track is unable to obtain customers, even though it has no rivals or competitors.

Question

Quizplus · Accepted Answer

Barriers to entry are factors that make it difficult and costly for a company to enter a particular task environment or industry.In other words, the more difficult and costly it is to enter the task environment, the higher are the barriers to entry.The higher the barriers to entry, the fewer the competitors in an organization's task environment and thus the lower the threat of competition.With fewer competitors, it is easier to obtain customers and keep prices high.

Which of the Following Statements Supports the Fact That Toy