Which of the Following Is NOT an Example of a Threat

question 85

Multiple Choice

Which of the following is NOT an example of a threat to a company's future profitability and well-being?

• A) The likely entry of potent new competitors
• B) The lack of a well-known brand name with which to attract new customers and help retain existing customers
• C) Shifts in buyer needs and tastes away from the industry's product
• D) Costly new regulatory requirements
• E) Growing bargaining power on the part of the company's major customers and major suppliers

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, with holders having a claim on the company's profits in the form of dividends.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.

Current Liabilities

Financial obligations a company owes and is required to settle within a year.

Acid-Test Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.