Which of the following is not an explanation for theexistence of exit barriers?
Multiple Choice
A. specialized assets with no alternative use
B. governmental and social pressures
C. strategic interrelationships with other business units withinthe same company
D. excessive local profits
Expert Answer
The correct answer is option (D) excessive localprofits
Exit barriers are those obstacles that prevent companies fromexiting the market.
Option (A) If a company has specialized assets with noalternative use,then the company will incur huge loss if they leavethe market because of high investment made and no use for thosespecialized assets for the company.Hence,this is an exit barrierfor the company and is not the right
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