Not All Buyers of an Industry's Product Have Equal Degrees

question 20

Multiple Choice

Not all buyers of an industry's product have equal degrees of bargaining power with sellers because

• A)sellers in an industry provide similar products and generally their cost structures are different because of competitive advantages in their operation.
• B)some sellers may be less sensitive than others to price, quality, or service differences.
• C)along the various stages of the value chain sellers are conducive to earning attractive profits.
• D)the industry is a highly cohesive structure with limited fragmentation and few industry members.
• E)sellers are large and few in number relative to the number of buyers.

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Definitions:

Franchise

A type of business wherein a franchisor grants a franchisee the right to use its trademark, products, and business methods in exchange for a fee.

Open Source Software

Software with source code that anyone can inspect, modify, and enhance, promoting collaborative development and free distribution.

Franchisee

An individual or company that is granted the right by a franchisor to run a business under the franchisor's trademark and business model.

Family Business

A commercial organization in which decision-making is influenced by multiple generations of a family related by blood or marriage who are closely identified with the firm.