Question

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ________ growth strategies.

a. Product proliferation
b. Market development
c. Market penetration
d. Diversification
e. Product development

Answer 1

Answer:

The correct answer is letter "B": Market development.

Explanation:

Market development implies individual professionals and organizations to expand their operations whether focusing on a new sector of the market or by starting their business in different regions. Besides increasing profits, market development allows them to diversify their clientele which is a strength for the business in front of adverse economics situations.

Thus, if a state creates licensing requirements for lawyers and accounts to restrict their entry from other regions, that state is limiting market development.