Which of the Following Statements About the Internet's Effect on the Competitive

question 14

Multiple Choice

Which of the following statements about the Internet's effect on the competitive forces that exist in a company's environment is true?

• A) The Internet increases barriers to entry.
• B) Overall, the Internet tends to decrease the bargaining power of suppliers.
• C) The Internet blurs differences among competitors.
• D) The Internet creates fewer substitution threats.
• E) All of these

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Definitions:

Compounded Monthly

A method of calculating interest in which the interest earned each month is added to the principal, and the following month's interest is calculated on the new total.

Perpetuity

A financial instrument that pays a fixed amount of cash flow indefinitely.

Compounded Annually

Involves the calculation and addition of interest to the principal sum of a loan or deposit once every year.

Compounded Quarterly

A method where interest is added to the principal every three months which allows interest to be earned on the previously accumulated interest.