Which One of the Following Is Not a Factor That

question 68

Multiple Choice

Which one of the following is not a factor that affects the strength of supplier bargaining power?

• A) Whether needed inputs are in short or ample supply
• B) Whether industry members are a strong threat to integrate backward into the business of suppliers
• C) Whether industry members are struggling to make good profits because of slow-growing market demand
• D) Whether the costs of industry members to switch their purchases to alternative suppliers or substitutes are high or low
• E) Whether the item being supplied is a commodity that is readily available from many suppliers

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Definitions:

Compounding

The process whereby interest is credited to an existing principal amount as well as to interest already paid, leading to exponential growth over time.

Investment

The allocation of resources (such as capital) to assets with the expectation of generating future profit or income.

Intrinsic Value

The actual value of a company or an asset based on underlying perceptions of its true value including aspects of both tangible and intangible factors.

Present

The current moment in time, often used as a reference point in discussions about time value of money.