Which of the Following Is One of the Factors That

question 53

Multiple Choice

Which of the following is one of the factors that determines the nature and degree of competition in an industry, as identified by Michael Porter in his book Competitive Advantage?

• A) The interest of small businesses
• B) Bargaining power of competitors
• C) Threat of substitute products or services
• D) The macroeconomy

---

Definitions:

Financial Advantage

The benefit obtained from making specific financial decisions or investments, often measured in terms of profit, savings, or a more favorable financial position.

Variable Costs

Expenses that change in proportion to the business activity level.

Financial Advantage

The benefit gained in financial terms, likely leading to improved profitability or reduced expenses.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much revenue is contributing to fixed expenses and profit.