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FSOT Full Test Bank

Category - Management

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When the buyer has a low profit margin, what happens to the seller’s bargaining power?

It decreases.
It increases.
It stays the same.
The seller’s bargaining power is not affected by the buyer’s profit margin.

Explanation

Answer: A - The seller’s bargaining power decreases. If the buyer has a low profit margin, it is easy for him or her to walk away from a deal. It is much harder to walk away from a deal that is lucrative.

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