What Is Threat of New Entrants

question 122

Multiple Choice

What is threat of new entrants?

• A)the ability of buyers to affect the price they must pay for an item
• B)the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services)
• C)high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market
• D)high when there are many alternatives to a product or service and low when there are few alternatives from which to choose

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Definitions:

Customers Served

The number of customers that have been provided with products or services by a business during a specific time period.

Planning Budget

A budget created for a specific level of activity; it helps management set financial targets and evaluate performance.

Customers Served

refers to the number or segment of clients to whom a business has provided products or services within a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level, thereby providing a more useful tool for controlling costs.