In Which of the Following Situations Is the Strength of Competitive

question 9

Multiple Choice

In which of the following situations is the strength of competitive forces low?

• A) when switching costs are high
• B) when the prices of rival products are relatively high
• C) when customers are not loyal to the existing company or brand
• D) when finding rival products is difficult

---

Definitions:

Dividend

A disbursement by a company to its stockholders, typically from earnings.

Growth Rate

The growth rate refers to the percentage increase in the value, size, or number of something over a specific period.

Price-Earnings Ratio

A valuation metric for companies, calculated by dividing the current market price of a stock by its earnings per share.

Dividend Payout Ratio

The dividend payout ratio is the proportion of earnings paid to shareholders in the form of dividends, expressed as a percentage of the company's total earnings.