1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
polet [3.4K]
2 years ago
9

Under which conditions, according to the Porter five-forces model, can a supplier group gain power?

Business
1 answer:
Tasya [4]2 years ago
8 0

Answer:

b. When there is a lack of importance of the buyer to the supplier group

Explanation:

According to Porter there are five forces that can cause rivalry in a production industry. These are supplier power, threat of new entrants, buyer power, threat of substitutes, and degree of rivalry.

Supplier power is when suppliers are able to benefit from the producers by increasing prices of inputs and gaining some industry profit. Since suppliers supply input and labour to the producer they have a greater control of there is lack of importance of the buyer to the supplier group.

This means that the supplier group has more control on price and quality it supplies to the buyer with buyer having little choice but to buy.

If however buyer is more important to the supplier it means they can control price and quality of inputs

You might be interested in
Suppose lawyers seek legislation to limit the use of computer software that enables people to use their personal computers to se
Harman [31]

Answer:

c. rent-seeking behavior

Explanation:

In economics, rent-seeking behavior can be described as a behavior or conduct that tries to increase the share of an economic agent or an entity from the existing wealth without adding or creating new wealth. This implies that the entity aims to obtain added wealth without creating a new one.

From the question, the aim of the lawyers is mainly to increase their own wealth in terms of legal fees they will collect from preparing wills, trusts, and other legal documents when they prepare them for people when a law restrict people from self-preparing it using their personal computers. In turn, the lawyers will only increase their share of wealth without adding any wealth.

Therefore, this is an example of rent-seeking behavior.

6 0
3 years ago
The PE ratio: Assuming Net Income for the year is $250,000, what is the net cash flows from operating activities given the follo
solmaris [256]

Answer:

Net operating cash flow = $189,250

Explanation:

Particulars                                    Amount$

Net income                                    250,000

Add:depreciation expense           9,500

Add:loss on sale of asset              1,250

Add:increase in salary payable    19,500

Less:increase in prepaid rent       (27,500)

Add:increase in AP                        29,500

Less:increase in inventory            <u>(93,000)</u>

Net operating cash flow              <u>$189,250</u>

4 0
2 years ago
When managers of firms in a competitive market observe falling profits, they may infer that the market is experiencing a. a viol
Oliga [24]

Answer:

c. the entry of new firms

Explanation:

  • The entry of the new firms in the market creating a  market supply curves to shift to the right side and as the curve shifts the markets price then starts to decline with it  
  • This declines the economic profits in the new and the existing firms as long as the profits exists  in the markets and entry will continue to shift to supply to the right.
  • The diversification of the melt and the fall in the monopoly of the firms start to take place.  
  • They take up resource ownership and technological developments. In short, they increase the competitiveness and bring rivalry into the market.
7 0
3 years ago
The basic strategy options for local companies in competing against global challengers include a. utilizing understanding of loc
amid [387]

Answer:A

Explanation:

8 0
3 years ago
Racing Motors wants to save $825,000 to buy some new equipment three years from now. The plan is to set aside an equal amount of
victus00 [196]

Answer:

$63,932.91

Explanation:

FV = $825,000

Number of payments = 4 quarters * 3 years = 12

Rate = 4.45%, assuming per annual

The amount company need to save each quarter is the payment amount.

We can easily calculate payment amount by formula in excel =PMT(4.45%/4,12,,825000,1) = 63,932.91

6 0
3 years ago
Other questions:
  • Corba Company is evaluating whether to replace an old machine with a new, more efficient machine. Corba purchased the old machin
    14·1 answer
  • As a real estate speculator, you are planning and able to buy a house that costs $200,000, borrowing the full amount with no mon
    7·1 answer
  • Currently you are the only gas stations for40 miles. The average price of gasoline in your state is 3.50 per gallon. How much sh
    14·1 answer
  • Britney, a teenager, starts her own business of selling cupcakes to coffee shops and restaurants. she strives to increase either
    15·1 answer
  • An investor asks a registered representative to underline the most important facts found in a preliminary prospectus. The regist
    7·1 answer
  • The total assets on the balance sheet was $128,800 before journalizing and posting the adjusting entries for $800 of expired ins
    12·1 answer
  • Which of these would be considered an entrepreneur?
    9·2 answers
  • A customer buys 17. 01 in gas and requests one five dollar [$5] lottery ticket, two one dollar [$1] lottery tickets, and one [$3
    5·1 answer
  • The unintentional misstatement or nondisclosure of a material fact made by one party with the hope of influencing the other part
    12·1 answer
  • because it produces and distributes a specific type of cultural product for public consumption to profit financially, a video ga
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!