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.

---

Definitions:

Par Value

The nominal value of a bond or stock as declared by the issuer, which may not correspond with its value on the market.

Treasury Stock

Shares of a company’s own stock that it has reacquired and holds in its treasury.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders.

Financial Statements

Compiled financial data reports that reflect a company's financial condition, performance, and cash flow, including balance sheet, income statement, and statement of cash flows.