Instructions: Based on the information provided in the Overview, match the competitive pressure to its source of competition. High capital needs; Extremely low switching costs; No proprietary products or services; Little or no profit the first few years; Likelihood of retaliation strong; Consumer preference for well-known brands
Limited number of manufacturers; Standardized products; High capital requirements; Long-term contracts; Limited differentiation; High switching costs; Low bargaining power
Medium switching costs
Mature stage business cycle; High fixed costs; Brand identities and amenities differ; Low switching costs
Low switching costs; Some loyalty; Low bargaining power; Price sensitivity
Match each of the options above to the items below.
Suppliers
Buyers
Substitutes
New Entrants
Competition

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.