Which industry characteristic most likely has a positive effect on a company's ability to service debt?
A) low barriers to entry in the industry
B) High number of suppliers to the industry
C) broadly dispersed market share among large number of companies in the industry

Question

Quizplus · Accepted Answer

High number of suppliers to the industry can provide companies with more options to reduce costs or improve terms, potentially improving profitability and cash flow, which in turn can enhance a company's ability to service debt.

Which Industry Characteristic Most Likely Has a Positive Effect on a Company's