Which of the Following Is NOT One of the Reasons

question 107

Multiple Choice

Which of the following is NOT one of the reasons a segment would be less attractive to a company?

• A)strong competitors
• B)substitute products
• C)concentrated market
• D)power of buyers
• E)power of suppliers

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Definitions:

Current Ratio

A financial metric that compares a company's current assets to its current liabilities, indicating liquidity levels.

Equity (Leverage)

The amount of funds contributed by owners (shareholders) plus the retained earnings (or losses). It can also refer to the use of debt to acquire additional assets.

Borrowed Money

Funds that an individual or entity obtains from another party under the condition of future repayment with interest, which can be used for various purposes.

Debt Paying Ability

Debt paying ability indicates an entity's capacity to repay its debt obligations based on its financial situation, including liquidity ratios and income.