Which of the Following Factors Can Correctly Explain Why Supermarkets

question 11

Multiple Choice

Which of the following factors can correctly explain why supermarkets have emerged as successful retailers of fuel in the French service station industry?

• A) There are a very large number of buyers in the market for fuel.
• B) Switching costs in the fuel market are very low.
• C) Supermarkets have negotiating power over fuel suppliers due to their size.
• D) Fuel is a highly differentiated product.

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Definitions:

Cumulative Surplus

The total amount of net income retained by a company over time, which has not been distributed to shareholders as dividends.

Minimum Cash Balance

The least amount of cash a company needs on hand to meet its immediate operational expenses and financial obligations.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.

Restrictive Policy

A restrictive policy refers to a set of rules or regulations designed to limit or control certain activities or behaviors, often implemented to ensure safety, security, or compliance with legal standards.