Which of the Following Is NOT Descriptive of a High

question 82

Multiple Choice

Which of the following is NOT descriptive of a high level of bargaining powers of buyers?

• A) Changing suppliers costs very little.
• B) Alternative suppliers are plentiful because of standardization of the product.
• C) The purchased product represents a high percentage of buyer's costs.
• D) The buyer buys a large proportion of the seller's product or service.
• E) A buyer earns high profits and is very insensitive to costs and service differences.

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Definitions:

Cost of Capital

The yield a firm needs to generate on its investments to preserve its market value and draw in capital.

Investors' Money

Funds provided by investors to be used in business activities with the expectation of future returns.

Financial Statements

Reports created from accounting records that summarize a firm’s performance in money terms.

Cost of Capital

Refers to the opportunity cost of making a specific investment, representing the rate of return that could have been earned by putting the same money into a different investment with equal risk.