A Supplier Gains Power When the Product Is

question 142

Multiple Choice

A supplier gains power when the product is:

• A)critical to the buyer, and switching costs are high.
• B)relatively unimportant to the seller, and switching costs are low.
• C)critical to the buyer, and switching costs are low.
• D)relatively unimportant to the seller, and switching costs are high.

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's profitability.

Carrying Amount

The net value of an asset or liability according to a company's balance sheet.

Supplies Used

Expenses related to consumable items used in the operation of a business.