barriers to exit

Restrictions on the ability of participants in a *market to withdraw from an activity or to deploy resources elsewhere. A common barrier to exit is the existence of a law or regulation that forces an organization to produce goods or provide services deemed to be for the public good. Another barrier to exit is the impact of *sunk costs: An organization that makes massive investments in machinery may find it impractical to abandon the activity for which the machinery was purchased.

Auditor's dictionary. 2014.

Look at other dictionaries:

  • Barriers to exit — In economics, barriers to exit are obstacles in the path of a firm which wants to leave a given market or industrial sector. These obstacles often cost the firm financially to leave the market and may prohibit it doing so. If the barriers of exit …   Wikipedia

  • Barriers To Exit — Obstacles or impediments that prevent a company from exiting a market. Typical barriers to exit include highly specialized assets, which may be difficult to sell or relocate, huge exit costs, such as asset write offs and closure costs, and inter… …   Investment dictionary

  • barriers to exit — Factors that make it difficult for a company to leave a market that is no longer profitable or that has ceased to provide an acceptable return on capital. For example, the workforce producing the product may not be redeployable, the plant and… …   Big dictionary of business and management

  • Barriers to entry — Competition law Basic concepts History of competition law Monopoly Coercive monopoly Natural monopoly …   Wikipedia

  • barriers to entry — Restrictions on the entry of new competitors into a *market. Barriers to entry may result from technical and economic factors. For example, the large scale investment in machinery needed for some production processes may be beyond the economic… …   Auditor's dictionary

  • barrier to exit — ˌbarrier to ˈexit barriers to exit PLURALFORM noun [countable] ECONOMICS COMMERCE something that makes it difficult or expensive for a company to stop being involved in a type of business, or for a customer to end a business arrangement : •… …   Financial and business terms

  • Switching barriers — or switching costs are terms used in microeconomics, strategic management, and marketing to describe any impediment to a customer s changing of suppliers. In many markets, consumers are forced to incur costs when switching from one supplier to… …   Wikipedia

  • barrier to exit — /ˌbæriə tυ egzɪt/ noun a factor that makes it impossible or unprofitable for a company to leave a market where it is currently doing business (NOTE: Barriers to exit may be created, for example, when a company has invested in specialist equipment …   Marketing dictionary in english

  • Automatic full barriers — are a set of four half barriers closing a road at a railway level crossing. Typically the barriers on the approach side to the crossing are lowered first with those on the exit side following shortly after. The sequence timing is set to allow… …   Wikipedia

  • Emergency exit — NOTOC An emergency exit in a structure is a special exit for emergencies such as a fire: the combined use of regular and special exits allows for faster evacuation, while it also provides an alternative if the route to the regular exit is blocked …   Wikipedia

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