Which of the Following Factors Requires the Least Consideration When

question 5

Multiple Choice

Which of the following factors requires the least consideration when assessing supplier power relative to the upstream industry in which it buys raw materials?

• A)Number of competitors in downstream market
• B)Purchase volume of raw materials
• C)Availability of substitute inputs
• D)Number of upstream suppliers
• E)Ability of suppliers to price discriminate

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Definitions:

Hypothetical Thinking

The process of exploring and considering possibilities or outcomes that do not currently exist or have not yet occurred.

Deductive Reasoning

A reasoning method in which a conclusion is drawn from the agreement of several premises that are widely accepted as true.

Inductive Reasoning

A logical process in which multiple premises, collected through observation, are used to arrive at a probable conclusion.

Concrete Operational Thought

Piaget’s term for the ability to reason logically about direct experiences and perceptions.