Determining How Strong the Threat of Substitutes Will Be Entails

question 84

Multiple Choice

Determining how strong the threat of substitutes will be entails

• A)identifying the relative price/performance relationship of the substitutes, the switching costs, and the overall buyer demand for the substitute.
• B)identifying the attractiveness of other industries.
• C)measuring Coke as a substitute for Pepsi and applying dynamic simulation modeling techniques.
• D)adopting a substitute product concentration factor to the buyer volume.
• E)judging whether industry members are capable of self-manufacturing their products.

Comprehend the effects of changes in credit policy on sales, receivables, and profitability.

Recognize the role and impact of collection policies on a firm's financial health.

Understand the significance of inventory management in operations and its effect on a firm's financial performance.

Identify the considerations for holding marketable securities and managing idle cash.

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Definitions:

ATA

The acronym for American Trucking Associations, a large trade association for the trucking industry in the United States.

TMC

TMC can refer to the Technology & Maintenance Council, a professional organization focused on advancing truck technology and maintenance practices to improve vehicle reliability and efficiency.

Governor Cut-Out Pressure

The maximum pressure at which a compressor's governor stops the compressor from pumping air, usually to prevent over-pressurization in pneumatic systems.

Spring Brake Chamber

A component in air brake systems that uses spring force to apply the brakes for parking and emergency stopping.