A Supplier's Bargaining Position Is Strong When

question 45

Multiple Choice

A supplier's bargaining position is strong when

• A)the input is vital to the organization.
• B)there are a large number of suppliers for an input.
• C)the supply is free.
• D)the supply is not protected by a patent.

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Definitions:

Book Value

The difference between a company's total assets and its total liabilities, as shown in the balance sheet.

Statement of Financial Position

A financial statement detailing a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial health.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.

Cash Flow to Stockholders

The amount of cash that a company returns to its shareholders, typically in the form of dividends.