James has invested a large amount of money in his business; he is reluctant to just give up this investment, which he would have to do if he closed his business.This is an example of an exit barrier.

Question

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An exit barrier refers to any obstacle that prevents a business from exiting a market or industry. In this case, James' investment in his business is an exit barrier as it makes it difficult for him to just walk away from the business and abandon his investment.

James Has Invested a Large Amount of Money in His