The Bargaining Leverage of Suppliers Is Greater When

question 107

Multiple Choice

The bargaining leverage of suppliers is greater when

• A)the suppliers' products/services account for a small percentage of industry members' costs.
• B)industry members incur low costs in switching their purchases from one supplier to another.
• C)industry members account for a big fraction of supplier's sales.
• D)there is extensive seller-supplier collaboration.
• E)the supplier industry is composed of a large number of relatively small suppliers.

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Definitions:

ROE

Return on Equity (ROE) is a financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how well the company uses investments to generate earnings growth.

Total Assets Turnover

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.

Equity Multiplier

A measure of a company's financial leverage, calculated as total assets divided by total equity.

Net Income

Net Income is the total earnings of a company after deducting all expenses, taxes, and costs, representing the profit earned during a specific period.