Which of the Following Statements Is True About the Five

question 1

Multiple Choice

Which of the following statements is true about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment?

• A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity supplied.
• B) A segment is unattractive if buyers possess strong or growing bargaining power.
• C) A segment is attractive when there are actual or potential substitutes for the product.
• D) A segment is attractive if it already contains numerous, strong, or aggressive competitors.
• E) The most attractive segment is one in which entry barriers are low and exit barriers are high.

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Definitions:

Medical Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, offering protection against high healthcare costs.

Vesting Rights

Guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer.

Pension Plan

A pension plan is a retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit. The funds are invested on the employee's behalf, and the earnings on the investments generate income to the worker upon retirement.

Retirement Age

The age at which a person is eligible to retire and receive full pension benefits, typically set by government policies or employment agreements.