Question

pearson Sign In WVNCC West Virg.. 0949 18content id ole Attempts This test allows multiple attempts Completion This test can be saved and resumed later estion Completion Status UESTION 1 "Last month, I opened a résumé-writing business out of my dorm room. And, now, on this floor alone, I find that I have three start-up competitors!" complained Ashley. Her roommate replied, "Well, at least you haven't had to buy any new equipment for your business. But apparently neither have your competitors." This scenario indicates the low bargaining power of customers when suppliers high bargaining power of customers when suppliers high threat of new entrants when capital requirements are low. high threat of new entrants when substitute products are numerous. are few. are few high bargaining power of suppliers when the market is weak. QUESTION 2 The main difference between final consumers and intermediate consumers is that the final consumers

Answer 1

1. The correct answer is :high threat of new entrants when the capital requirements are low.

Since Ashley's business did not require any equipment,the capital requirements are very low.This indicates that there are low entry barriers to enter into Ashley's industry.Hence,the threat of new entrants will be very high when there are low or no entry barriers.

Other options :

The caselet does not talk about customers or suppliers and hence we cannot infer anything about the bargaining power of suppliers and customers.

Also,from the given information ,the threat of substitutes does not fit into the context and hence is not the right answer.