Which of the Following Would Not Be Investigated When a Business

question 209

Multiple Choice

Which of the following would not be investigated when a business was analyzing competitive pressures?

• A) Buyer and supplier power
• B) Internal operational capacity
• C) Threat of substitute products or services and of new entrants
• D) Rivalry among existing competitors

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Definitions:

User Cost

The cost of using a durable good or asset, which includes depreciation, interest lost on funds used to buy the asset, and maintenance costs.

Nonrenewable Resources

Natural resources that cannot be replenished within a human lifetime, such as fossil fuels or minerals.

Opportunity Cost

The value of the next best alternative foregone as the result of making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Extracting

The process of obtaining raw materials from the natural environment for use in the production of goods or services.