Scripts & Scrolls Corp

question 2

Multiple Choice

Scripts & Scrolls Corp.supplies printing paper to select publishing houses.When its customers asked for a discount in the cost of supplies,the company had to oblige fearing that the customers might withdraw pending contracts.This shows the increased:

• A) bargaining power of buyers.
• B) bargaining power of suppliers.
• C) threat of substitutes.
• D) vertical integration of buyers.

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Definitions:

Foreseeable User

A person who is reasonably expected to use a product and whom the manufacturer or provider should consider when designing or supplying the product.

Securities Exchange Act of 1934

A U.S. federal law governing the trading of securities in the secondary market, overseeing transactions, requiring disclosure, and aiming to prevent fraud.

Scienter

A legal term referring to the knowledge of wrongdoing, particularly the party's intent to deceive or act fraudulently in securities law.

GAAS

Generally Accepted Auditing Standards; guidelines for auditors in the conduct of financial audits.