Which of the Following Do Not Qualify as Potential Driving

question 28

Multiple Choice

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

• A) Changes in who buys the product and how they use it and changes in the long-term industry growth rate
• B) Entry or exit of major firms, product innovation, and marketing innovation
• C) Increases in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration
• D) Growing buyer preferences for differentiated products instead of mostly standardized or identical products
• E) Changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities

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Definitions:

Immaterial

Refers to the insignificance of information or amounts that would not influence the decision-making process of users of financial statements.

Aggregation

involves the process of combining multiple pieces of data or information to form a summary or a whole, used extensively in statistics, data analysis, and reporting.

Non-Current

Refers to assets or liabilities expected to be settled, realized, or fully appreciated over a period longer than the company's next fiscal year.

Operating Cycle

The average time period between purchasing or acquiring inventory and receiving cash from the sale of goods or services.