ABC Motors Is the Largest Manufacturer of Cars

question 4

Multiple Choice

ABC Motors is the largest manufacturer of cars.The company purchases raw materials from many small-sized sellers across the globe.In this case, ABC Motors is characterized by ________.

• A)very low threat of substitute products
• B)high bargaining power over its suppliers
• C)very low threat of new entrants to market
• D)very high bargaining power over its customers

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Definitions:

Annual Interest

The amount of interest earned or paid over a one-year period on investments, loans, or savings.

Rule of 70

A formula used to estimate the number of years required for an investment or population to double, given a fixed annual growth rate.

Interest Rate

The sum charged by a lender, as a fraction of the principal, for the privilege of accessing assets by a borrower.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.