Refer to IT's About Business 2

question 84

Multiple Choice

Refer to IT's About Business 2.4 - Progressive: Progressive's Name Your Price application is aimed at which of Porter's five competitive forces?

• A) threat of entry of new competitors
• B) bargaining power of suppliers
• C) bargaining power of customers
• D) threat of substitute products
• E) rivalry among existing firms in an industry

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Definitions:

Sole Proprietorship

A business structure where a single individual owns and runs the business, responsible for all its debts and liabilities.

Debt Financing

Borrowing money that must be repaid over time, with interest.

Collateral

is an asset pledged as security for the repayment of a loan, forfeitable in the case of default.

Corporation

A legal entity recognized by law as a separate "person" that can own assets, incur liabilities, and conduct business, often with the aim of generating profit for its shareholders.