When the Bargaining Power of Suppliers and Buyers Is High

question 91

Multiple Choice

When the bargaining power of suppliers and buyers is high, companies in the industry will_____________ .

• A) find it more difficult to be profitable
• B) most likely use a growth strategy
• C) divest themselves of all of their cash cows
• D) engage in organizational restructuring
• E) not own any stars

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Definitions:

Purchase-Money Security Interest

A security interest or claim on property that secures repayment of the money used to purchase the property, commonly seen in secured transactions.

Financing Statement

A document filed to give public notice of a security interest in personal property, securing payment or performance of an obligation.

Chattel Paper

A document or electronic record indicating both a monetary obligation and a security interest in or a lease of specific goods.

Monetary Obligation

A required payment of money owed by one party to another, typically defined by the terms of a contract or agreement.