A Buyer Group Is Powerful If

question 62

Multiple Choice

A buyer group is powerful if:

• A) The buyers pose a credible threat to make the industry's product
• B) The industry product saves the buyer money
• C) It earns high profit
• D) The industry has high exit barriers

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Definitions:

Preferred Equity

A type of equity which is ranked higher than common stock and usually has fixed dividend payments.

Common Equity

Common equity represents the ownership interest in a company held by common shareholders, as reflected in the company's equity capital.

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest values through common factor division.

Ratio

A ratio indicating how often one number can encompass or be encompassed by another value.