Which of the Following Attributes Makes Suppliers a Stronger Threat

question 87

Multiple Choice

Which of the following attributes makes suppliers a stronger threat?

• A) The supplier's industry is dominated by a small number of firms.
• B) The product or service provided by suppliers is not highly differentiated.
• C) Suppliers are threatened by substitutes.
• D) Suppliers are not able to engage in forward vertical integration.

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specified rate of return.

Present Value

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

Discounting

The process of determining the present value of future cash flows by applying a discount rate.

Compounding

The process in which the value of an investment increases because the earnings on an investment, both capital, and interest, earn interest as time passes.