Lu runs a company that manufactures satellites for commercial and government use. It has few rivals. At the moment, the power of buyers, the power of suppliers, and the threat of substitutes are all low. Based on this information, what can Lu conclude?
A. The manufacturer is likely to see little profit until the power of buyers improves.
B. The company is likely to be very profitable as long as the threat to entry is low.
C. This firm is an example of near-perfect competition.
D. In this scenario, suppliers are likely to create and sell effective substitutes.
Answer: B
You might also like to view...
A partner invests into a partnership a building with a $50,000 carrying value and $80,000 fair market value. The related mortgage payable of $25,000 is assumed by the partnership. The entry to record the investment in partnership is:
A) Building 50,000 Mortgage Payable 25,000Capital 25,000 B) Building 80,000 Mortgage Payable 25,000Capital 55,000 C) Capital 80,000 Mortgage Payable 25,000Building 55,000 D) Capital 50,000 Mortgage Payable 25,000Building 25,000
Schuler and Jackson (1987) suggest which HR strategy is required to match Porter’s competitive strategy of focusing on niche markets:
a. innovation b. quality enhancement c. cost reduction d. progressive
Which of the following statements is true of the Generally Accepted Accounting Principle (GAAP)?
A) It is used by auditors as a guide for their nonaudit services only. B) It is the accepted form of accounting principles around the world. C) It cannot be modified once established by the American Institute of Certified Public Accountants. D) It sets rules for how corporations must set their accounts on their financial statements.
The fair market value of a 10-foot fishing boat is $1,000 . In a special promotion, J's Marina purchases a 10-foot fishing boat for $900 . The boat is badly scratched when it arrives. J's Marina, however, accepts the shipment and notifies the seller of the defect. The boat as delivered has a value of $800 . If the damaged boat is a breach of warranty by the seller, the buyer may recover from the
seller: a. $100. b. $100 plus incidental and consequential damages. c. $200. d. $200 plus incidental and consequential damages.