Which of the Following Factors Is Not a Relevant Consideration

question 82

Multiple Choice

Which of the following factors is not a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

• A) Whether the number of buyers is small or if a customer is particularly important to the seller
• B) Whether buyers are relatively well informed about sellers' products,prices,and costs
• C) Whether buyer needs and expectations are changing rapidly or slowly
• D) Whether buyer demand is weak or strong and rapidly growing
• E) Whether buyers pose a credible threat of integrating backward into the business of sellers

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Definitions:

Equity Method

A method of accounting employed by companies to evaluate the earnings from their investments in other firms.

Subsidiary

A company controlled by another company, often referred to as the parent company.

Fair Value

The likely receipts from offloading an asset or the expenditure to relocate a liability, in a systematic transaction at the market rate on the day of valuation.

Initial Value Method

An accounting method where investments are recorded at their acquisition cost without subsequent change except for impairments and certain adjustments.