Which of the Following Factors Is Not a Relevant Consideration

question 3

Multiple Choice

Which of the following factors is not a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

• A) The number of buyers is small,or a customer is particularly important to the seller.
• B) Buyers are relatively well informed about sellers' products,prices,and costs.
• C) Buyer needs and expectations are changing slowly or rapidly.
• D) Buyer demand is weak or strong and slowly or rapidly growing.
• E) Buyers pose a credible threat of integrating backward into the business of sellers.

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Definitions:

Greenmail Arrangement

A situation where a company buys back its own shares from a potential acquirer at a higher price to avoid a takeover attempt.

Pre-Offer Strategy

A plan devised prior to making an offer, typically in negotiation or bidding contexts, to maximize successful outcomes.

Tender Offer

A public proposal made by a person or company to shareholders to buy shares of a corporation, typically at a premium over the market price.

Stock Acquisition

The purchase of enough of the voting stock of a corporation to allow the buyer to control the corporation. Also called takeover.