The Level of Industry Demand

question 63

Multiple Choice

The level of industry demand:

• A) has little effect on competition in the industry.
• B) is one of the determinants of the intensity of rivalry in the industry.
• C) increases when customers exit a marketplace.
• D) does not impact the market share that established companies hold.
• E) decreases the rivalry among established companies, when in decline.

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Definitions:

Lockbox

A service offered by banks to companies for the collection of payments from customers, involving a special post office box to speed up the deposit process.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Accounts Receivable

Money owed a company by its clients or customers who have promised to pay for the products at a later date.