Which of the Following Is True If the Threat from a Substitute

question 49

Multiple Choice

Which of the following is true if the threat from a substitute 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:

Accounts Payable Subsidiary Ledger

The subsidiary ledger containing the individual accounts with creditors (suppliers).

Cash Payments Journal

A business ledger that documents every cash expenditure or payment conducted by a company.

Purchases Journal

A purchases journal is a special journal used in accounting to record all purchases of merchandise, supplies, or other assets on credit.

Horizontal Analysis

Financial analysis that compares an item in a current statement with the same item in prior statements.