In which one of the following instances is supplier bargaining power and leverage not weakened?
A. when the item being supplied is a commodity
B. when the buying firms purchase in large quantities and thus are important customers of the suppliers
C. when the items purchased from suppliers are in short supply
D. when the cost of switching from one supplier to another is low
E. when industry members pose a credible threat of backward integration into the business of suppliers
Answer: E
You might also like to view...
Bess, Ray, and Irwin inherited 48 acres of land, which they own as tenants in common. If Bess decides she wants to live on a portion of the land, in order to get clear title to that portion:
a. Bess may request that the land be partitioned, which would change her, Ray's, and Irwin's undivided interests in the whole parcel into smaller, individually owned parcels. b. Bess need only move onto the land, as she has the right to possession of the whole 48 acres. c. Bess would need to convince Ray and Irwin to join her in selling the entire 48 acres, and she would then need to buy the portion she wishes to own separately. d. Ray and Irwin must agree to relinquish their right of survivorship and thus destroy the present tenancy.
Financial statement analysis is one of the fundamental concepts that a nonfinancial manager should understand in order to:
A) better assess the current environment in which the firm operates. B) better assess the future financing requirements. C) better understand the role of capital markets in raising long-term funds. D) better measure and create value for the shareholders.
Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $56,000 and the cost of goods sold during the month was $125,000. The cost of goods manufactured during July was:
A. $125,000. B. $117,000. C. $104,000. D. $133,000. E. None of the answers is correct.
The 99% confidence interval estimate for a population variance when a sample standard deviation of 12 is obtained from a sample of 10 items is
a. 4.589 to 62.253. b. 46.538 to 422.171. c. 54.941 to 746.974. d. 62.042 to 562.895.