The Bargaining Power of Suppliers Increases as ____________

question 10

Multiple Choice

The bargaining power of suppliers increases as ____________.

• A) more suppliers enter the market
• B) importance of buyers to supplier group increases
• C) switching costs for buyers decrease
• D) threat of forward integration by suppliers increases

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Definitions:

Risk-free Investment

An investment that is considered to have no risk of financial loss, often represented by government bonds in stable countries.

Beta

Beta is a measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market, while a beta less than 1 suggests it is less volatile.

Expected Return

The weighted average of all possible returns for a given investment, accounting for the likelihood of each outcome.

Average Stock

Average Stock is a metric used to estimate the average amount of inventory a company holds over a certain period of time.