When One or More Industry Members Have Unusually Effective and Mutually

question 13

Multiple Choice

When one or more industry members have unusually effective and mutually advantageous partnerships with their suppliers,

• A) it is rare for such partnerships to have much competitive impact on those industry members not having such partnerships.
• B) one unfortunate outcome is that it tends to give the supply partners much enhanced bargaining power in their dealings with these industry members.
• C) there is a strong likelihood such partnerships will put increased competitive pressure on those industry members who lack productive collaborative relationships with their suppliers.
• D) there is a high likelihood of such partnerships reducing competitive pressures on all industry members, provided technological change in the suppliers' business is rapid and the item being supplied is a commodity.
• E) the usual result is to reduce competitive pressures on all industry members, provided the costs of the items furnished by supply chain partners amount to 50% or more of total cost.

---

Definitions:

Indirect Labor Costs

Expenses related to employees that cannot be directly linked to the production of goods or services, such as maintenance staff and management.

Selling Expense

The costs associated with distributing, marketing, and selling a product or service.

Budget Reports

Budget reports are financial documents that compare actual financial results with the budgeted amounts for a given period, often used for tracking performance and planning.

Planned Results

The expected outcomes or goals that a business aims to achieve as outlined in its planning processes.