Ever-Improving Levels of Efficiency Enhance Profit Margins for a Cost-Leader

question 9

Multiple Choice

Ever-improving levels of efficiency enhance profit margins for a cost-leader. This effects which of the five forces of industry structure most directly?

• A) Potential entrants
• B) Substitutes
• C) Buyer power
• D) Supplier power

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Definitions:

Limited Liability Company

A corporate framework blending the direct taxation feature of a partnership and the restricted liability characteristic of a corporation.

Unmarried Partner

An individual in a committed romantic relationship who lives with another individual without being legally married to them.

Buy The Other's Interest

To purchase the ownership stake of a partner or shareholder in a business, effectively transferring their portion of ownership to the buyer.

Privately Owned

Refers to assets, enterprises, or businesses that are owned by individuals or private entities, not controlled by the government.