Which of the following describes a way regulatory factors can disadvantage a firm?

The correct response highlights how regulatory factors can create obstacles that hinder a firm's ability to enter and compete in a market. Establishing barriers to market entry can take various forms, such as requiring extensive licenses, permits, or compliance with complex regulations. These barriers can deter new entrants from launching operations or can significantly increase the costs and time needed to establish a foothold in the market. This creates an environment where existing firms may enjoy less competition, ultimately reducing the potential for new businesses to challenge their market position.

In contrast, the other choices typically represent advantages or neutral outcomes associated with regulations. Tax incentives and lowered compliance costs can provide financial relief and enhance operational efficiency for firms, offering them a competitive edge rather than disadvantaging them. Operational training requirements, while potentially burdensome, may ultimately contribute to a more skilled workforce, which could enhance a firm's effectiveness rather than disadvantage it. Thus, the establishment of barriers to market entry is the most direct way regulatory factors can negatively impact a firm's competitive standing.