Which of the Following Is True If the Threat from Substitutes

question 65

Multiple Choice

Which of the following is true if the threat from substitutes is strong?

• A) Customers are likely to switch to competitors' products.
• B) Competitors' products are of a lower quality.
• C) Competitors are yet to overcome the entry barriers.
• D) Prices of competitors' products are higher.

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Definitions:

Credit Period

The duration during which a buyer can defer payment to a seller for goods and services purchased on credit.

Payment Terms

Conditions under which a seller will complete a sale, often detailing the time limit for payment and any discounts for early payment.

Amount Owing

The total sum of money that is due to be paid.

Operating Expense

An ongoing expense incurred in the operation of a business, such as rent, utilities, and salaries.