An Increase in the Bargaining Power of Suppliers

question 125

Multiple Choice

An increase in the bargaining power of suppliers

• A)increases both the attractiveness and the profitability of the target market.
• B)decreases both the attractiveness and the profitability of the target market.
• C)decreases the attractiveness and increases the profitability of the target market.
• D)increases the attractiveness and decreases the profitability of the target market.

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Definitions:

Asset Management

The organized method of creating, managing, preserving, and trading assets in an economically efficient way.

Profitability

A measure of the efficiency of a company in generating profits from its operations, typically evaluated through various financial ratios.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.