- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 6. Industry and Competitive Analysis
- Subject 4. Industry Structure and External Influences
CFA Practice Question
Examining the market share stability of an industry over time is similar to thinking about ______.
B. industry concentration
C. barriers to entry
A. industry capacity
B. industry concentration
C. barriers to entry
Correct Answer: C
User Contributed Comments 2
| User | Comment |
|---|---|
| khalifa92 | stable -> less compitition -> barriers |
| thevinu | If the stability of existing companies in industry is good, the companies will continue to prosper within that industry maintaining that market share making it difficult for other companies to enter. Hence C. |