Exit barriers to a firm include all of the following EXCEPT:
A) generic assets.
B) loyalty to employees.
C) governmental concern about job loss.
D) restrictive labor agreements.

Question

Quizplus · Accepted Answer

Exit barriers refer to the obstacles that an organization must overcome to leave an industry, and they typically include high fixed costs, specialized assets, switching costs, and brand reputation. Out of the given options, generic assets are not exit barriers as they can be easily sold or disposed of if a firm decides to exit the industry. Therefore, A is the correct answer. B, C, and D are valid examples of exit barriers, as they represent intangible investments that a firm cannot easily recoup if it decides to leave the industry.

Exit Barriers to a Firm Include All of the Following