A Company That Is in a Market with Few Buying

question 51

Multiple Choice

A company that is in a market with few buying options for the consumer is enjoying a high amount of which one of Porter's Five Competitive Forces?

• A) Bargaining power of suppliers
• B) Threat of substitute products
• C) Potential threat of new entrants
• D) Bargaining power of buyers
• E) Industry competitors

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Definitions:

Value Weighted Index

An index in which each constituent is weighted according to its market value, reflecting the performance of the market based on total capitalization.

Share Weighted Index

A stock market index in which each company is weighted according to the total value of its outstanding shares.

Price Weighted Index

A stock market index in which each company's stock influences the index in proportion to its price per share.

Adjustable Rate Mortgage

A type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan according to market conditions.