Suppliers in an Industry Are Most Powerful When

question 36

Multiple Choice

Suppliers in an industry are most powerful when:

• A) there are few substitutes for the products that they sell.
• B) switching costs are low.
• C) companies in the industry threaten to enter the suppliers' industry.
• D) their profitability is significantly affected by the purchases of companies in a particular industry.
• E) they refrain from entering their customers' industry because of lack of resources.

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Definitions:

Exempt

To be free from an obligation, duty, or liability to which others may be subject; typically used in contexts like taxes, legal requirements, or regulations.

Redemption

The buying back of one’s property after it has been sold. The right to redeem property sold under an order or decree of court is purely a privilege conferred by, and does not exist independently of, statute.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.

Bankruptcy Petition

A formal request filed by an individual or entity seeking the protection of bankruptcy laws to resolve insolvency issues.