Common exit barriers include
A)investments in specific assets.
B)emotional attachments to an industry.
C)high fixed costs associated with leaving the industry.
D)bankruptcy regulations.
E)all of these choices

Question

Quizplus · Accepted Answer

All of these choices are common exit barriers that make it difficult for companies to leave an industry. Investments in specific assets such as equipment and infrastructure make it costly and difficult to exit. Emotional attachments to an industry may make managers hesitant to leave despite poor performance. High fixed costs associated with leaving the industry can also make it financially detrimental to exit. Bankruptcy regulations can make it difficult to dissolve a company or exit an industry.

Common Exit Barriers Include