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:

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of 1%.

Yield To Maturity

The total return anticipated on a bond if held until its maturity date, factoring in its current market price, face value, interest rate, and time to maturity.

Perpetuity

A type of financial instrument that offers indefinite or endless payments to the holder, often used to represent the value of fixed interest stocks.

Compound Rate

The rate at which a sum of money grows exponentially over time, considering the reinvestment of interest or earnings.