According to the five forces model, which of the following is viewed as a major risk to a business pursuing a cost-leadership strategy?

A. innovation that allows competitors to emerge with more economical replacements
B. new entrants with small production scale
C. suppliers requesting a 2% price increase across the industry
D. competition switching from non-price attributes to pricing


Answer: A

Business

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Which one of the following statements is true?

a. External events (transactions) involve interactions between an entity and a party outside the entity. b. Every event or transaction which affects an entity is identified from a source document. c. All economic events can be reliably measured. d. The movement of raw material into production is an external event.

Business

In a merchandising firm, authorization for the payment of inventory is the responsibility of

a. inventory control b. purchasing c. accounts payable d. cash disbursements

Business

Ron says to Mark, "If you design and landscape my front lawn by the time I return from Paris next month, I will pay you $5,000." Mark does not respond but has the landscaping done by the time Ron returns. This is an example of a unilateral contract

a. True b. False Indicate whether the statement is true or false

Business

Inventory that separates various parts of the production process performs a(n) ________ function

Fill in the blanks with correct word

Business