Barriers To Exit

Question 1

Barriers to exit

Answer 1

The factors that could prevent a firm leaving a market even if the business wants to

Question 2

Barrier to exit: selling off capital

Answer 2

There could be a difficulty selling off capital due to them being specialised products

Question 3

Barrier to exit: redundancy costs

Answer 3

There could be high redundancy costs which the business might not be able to afford

Question 4

Barriers to exit : contracts with suppliers

Answer 4

There may be certain contracts involved which can lead to legal charges

Question 5

Barriers to exit: leases

Answer 5

There can be leases with landlords which you have to stick with