n NISM Certifications
XV NISM Series XV
Medium

Which of the following acts as an entry barrier for new businesses trying to enter a market?

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Capital requirements

  2. B

    Skill requirements

  3. C

    Licensing requirements

  4. All of the above

    Correct answer

Why this is the answer

Entry barriers are obstacles that prevent easy market access for new competitors. High capital requirements deter smaller firms, skill requirements demand specialized expertise, and licensing requirements create regulatory hurdles. Together, these factors make market entry challenging, giving established firms an advantage.

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