n NISM Certifications
XV NISM Series XV
Medium

Supplier bargaining power is high when ______.

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Number of suppliers is limited and buyers are many

  2. B

    Switching cost for customers is high

  3. C

    Suppliers provide critical inputs

  4. All of the above

    Correct answer

Why this is the answer

According to Porter’s Five Forces, suppliers have high bargaining power when they are few, supply essential inputs, and switching costs for buyers are high.

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