In Which One of the Following Instances Is Supplier Bargaining

question 70

Multiple Choice

In which one of the following instances is supplier bargaining power and leverage not weakened?

• A) When industry members pose a credible threat of backward integration into the business of suppliers
• B) When the cost of switching from one supplier to another is low
• C) When the buying firms purchase in large quantities and thus are important customers of the suppliers
• D) When the item being supplied is a commodity
• E) When the items purchased from suppliers are in short supply

---

Definitions:

Proprietorship

A type of business ownership where the business is owned and run by one individual who has full control and responsibility.

Single Individual

A term referring to one person, often used in the context of single-person households or individual decision-making.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction.

Limited Liability

A legal structure that limits the financial responsibility of the owners or shareholders of a company to the amount they have invested in the company.