The Bargaining Power of Suppliers Increases If

question 43

Multiple Choice

The bargaining power of suppliers increases if

• A)the cost of switching suppliers is relatively low.
• B)there are only a few competitors to the supplier.
• C)the input in question is not a critical component of production.
• D)the input supplied is relatively standardized.

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Definitions:

Constant Rate

A steady, unchanging rate of growth or decline, often used in the context of compounding interest or economic indicators.

Expected Return

The weighted average of all possible returns for an investment, accounting for the probability of each outcome.

Dividend Yield

The dividend yield represents a financial metric illustrating the annual dividend payments of a company as a proportion of its current stock price.

Preemptive Right

A shareholder's right to buy additional shares in a company before the company offers them to the general public, to maintain their percentage of ownership.