The Threat of Substitutes (Products from Different Industries That Satisfy

question 77

True/False

The threat of substitutes (products from different industries that satisfy customer needs being met by focal firms) is greater if there are low switching costs.

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Definitions:

Upstream Transactions

Transactions where a subsidiary sells goods or services to its parent company.

Unrealised Intragroup Profit

Profit on transactions within a group of companies that has not been realized outside the group, affecting consolidated financial statements.

Opening Inventory

The value of a business's inventory at the start of an accounting period.

NCI Share

Non-Controlling Interest Share, representing the portion of equity in a subsidiary not attributable directly to the parent company owners.