Answer:
The correct answer is letter "E": If many firms can supply an input comma then suppliers are unlikely to have the bargaining power to limit a firm's profits.
Explanation:
The negotiating power of suppliers determines the level of competition in a market, according to the concept of the <em>five competitive forces</em>. If only a few companies can supply output or if the input is limited, suppliers are likely to have the bargaining power to limit the income of a business.
Answer: consists of two or more independent organizations that combine requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers.
Explanation:
Purchasing consortium is simply defined as an arrangement that involves collaboration which takes place between two or more organisations who join hands together in order to gain better prices and achieve terms which are favorable from their suppliers.
Purchasing consortium consists of two or more independent organizations that combine requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers.
It should be noted that it's not only used by public institutions, therefore option A is incorrect. Purchasing consortium helps speed up the purchasing process.
The statement,"A real option enables the investor to buy an option for a small initial investment, hold it until a decision point arrives, and then exercise or abandon the option." is False
.
<u>Explanation:
</u>
A real option is to give corporate investment options to a company's executives. It is called "actual" because it usually refers to projects that involve a tangible asset rather than a financial product. Physical assets such as equipment, capital assets and the products are tangible assets.
The decision to extend or delay or wait or to leave a proposal may be real options. Real options require decisions or preferences that give people discretion and possible benefits when making financial decisions.
Kane manages a used book store he reads a report advising him to stock more encyclopedias. However the report is mistaken customers in Kane's town hardly ever buy encyclopedias. what problem could this mistake cause?
As mentioned below, if the consumers do not buy the encyclopedias, then they will lose money due to purchasing items that consumers do not want. It's necessary to not only look over reports, but understand the reports to make sure that a business is not overstocking in items that consumers are not actually in demand for. Consumers will purchase items they have a demand for and based on the reports, you can understand the items they are in demand for versus the items they will not be purchasing.
