The lower the user's switching costs, the
A. less intense the competitive pressures posed by substitute products.
B. lesser the bargaining power from both suppliers and influential customers.
C. more intense the competitive pressures posed by substitute products.
D. harder it is for the sellers of attractive substitutes to lure buyers to their offering.
E. greater the bargaining power from both suppliers and influential customers.
Answer: C
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A major difference between the spot market and the forward market is that the spot market deals with
a. the immediate delivery of currencies. b. the merchandise trade account. c. currencies traded for future delivery. d. hedging of international currency risks.
Which one of the following statements is TRUE?
A. An agency cost is the reduction in firm value due to agency conflicts. B. An agency cost is the wage required to pay someone who is hired to perform a service. C. An example of an agency cost is when the board of directors pays a dividend to shareholders. D. An example of an agency cost is when an attorney hires an expert witness for a trial. E. The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost.
Answer the following statements true (T) or false (F)
1. The margin of safety can be used to evaluate a company's plans for the future. 2. If variable costs increase, and all other factors remain the same, the margin of safety will become smaller. 3. If variable costs decrease, and all other factors remain the same, the margin of safety will become larger. 4. If fixed costs increase, and all other factors remain the same, the margin of safety will become larger. 5. The degree of operating leverage is the ratio that measures the effects that variable costs have on operating income when sales volume changes.
Discuss the ramifications of firing employees from their job by email or text message
What will be an ideal response?