XYZ Company Is a Low-Cost Provider

question 38

Multiple Choice

 XYZ Company is a low-cost provider. XYZ is most susceptible to

• A) the bargaining power of suppliers.
• B) the threat of substitutes.  
• C) new innovations from rival competitors.
• D) the bargaining power of customers.

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Definitions:

Articles of Incorporation

A document filed with a government body to legally document the creation of a corporation; synonymous with Corporate Charter but varies by jurisdiction.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicating the earnings investors are making from dividends.

Cash Dividends

Earnings given by a corporation to its investors, usually in the form of profit sharing.

Market Value

The current price at which an asset or service can be bought or sold, often used in reference to the market price of stocks or other securities.