Which of the Following Conditions Acts to Weaken Buyers' Bargaining

question 78

Multiple Choice

Which of the following conditions acts to weaken buyers' bargaining power?

• A)When buyers are unlikely to integrate backward into the business of sellers
• B)When buyers are well informed about sellers' products,prices,and costs
• C)When the costs incurred by buyers in switching to competing brands or to substitute products are relatively low
• D)When buyers have the ability to postpone purchases if they do not like the prices offered by sellers
• E)When buyers are few in number and/or often purchase in large quantities

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Definitions:

Deferred Income Tax Liability

A tax obligation due in the future for income that has been recognized in the financial statements before it is taxable.

Income Tax Expense

The cost to a company for its taxable income, calculated according to the applicable tax laws governing the period.

Accrued Vacation Benefits

The amount of vacation time earned by employees but not yet taken or paid out, often recorded as a liability on the employer's balance sheet.

Adjusting Entry

An accounting entry made in the general ledger to update the book values of assets, liabilities, revenues, and expenses at the end of an accounting period.