Exit barriers do not arise from ________.
A) specialized assets with no alternative use
B) governmental and social pressures
C) strategic interrelationships with other business units within the same company
D) flexible costs of exit

Question

Quizplus · Accepted Answer

Exit barriers are economic, strategic, and emotional factors that keep firms competing even though they may be earning low or negative returns on their investments. Some exit barriers are specialized assets, fixed costs of exit, strategic interrelationships (e.g., relationships between the business units and others within a company in terms of image, marketing, shared facilities, and so on), emotional barriers, and government and social pressures (e.g., governmental discouragement of exit out of concern for job loss).

Exit Barriers Do Not Arise from ________