If the costs of switching to another vendor are high, then the bargaining power of the customer is low
Indicate whether the statement is true or false
TRUE
You might also like to view...
Which internal control(s) would you recommend to prevent the following situations from occurring?a. While entering the details about a large credit sale, a clerk mistakenly typed in a nonexistent account number. Consequently, the company never received the payment from this customer.b. A customer filled in a wrong account number on the remittance advice. Consequently, a clerk entered the same number into the system, and the payment was credited to another customer's account.c. After processing a large sales transaction, the inventory records showed negative quantities on hand for several items.
What will be an ideal response?
Collective nouns always take a singular verb
Indicate whether the statement is true or false
Which of the following is considered a part of financial risk??
A. ?Demand variability B. ?Sales price variability C. ?The extent to which operating costs are fixed D. Changes in interest rates on debt? E. ?The ability to change prices as costs change
Which of the following statements is CORRECT?
A. The first, and perhaps the most critical, step in forecasting financial requirements is to forecast future sales. B. Forecasted financial statements, as discussed in the text, are used primarily as a part of the managerial compensation program, where management's historical performance is evaluated. C. The capital intensity ratio gives us an idea of the physical condition of the firm's fixed assets. D. The AFN equation produces more accurate forecasts than the forecasted financial statement method, especially if fixed assets are lumpy, economies of scale exist, or if excess capacity exists. E. Perhaps the most important step when developing forecasted financial statements is to determine the breakdown of common equity between common stock and retained earnings.