Which Forces Typically Represent Vertical Competition in a Value Chain

question 42

Multiple Choice

Which forces typically represent vertical competition in a value chain?

• A) Potential entry and substitutes.
• B) Buyer power and rivalry among existing firms
• C) Supplier power and potential entry.
• D) Buyer power and supplier power

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Definitions:

Optimal Level

The most efficient, effective, or desirable point or degree for a specific outcome or condition.

Financial Distress Costs

Expenses incurred by a company when it faces financial difficulties, including bankruptcy costs and the cost of lost opportunities.

Tax Liability

The total amount of tax that an individual, corporation, or other entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event.

Target Capital Structure

The ideal mix of debt, preferred equity, and common equity that a firm aims to achieve to minimize cost of capital.