Which of the Following Is Not a Limitation of Porter's

question 32

Multiple Choice

Which of the following is not a limitation of Porter's five-forces model?

• A)It is based on the assumptions of industrial organization theory.
• B)It does not allow for the role of partnerships.
• C)It does not account for the fact that a large firm may be able to influence industry structure.
• D)It assumes that firm resources explain firm performance.

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Definitions:

Expense Account

An account used to record expenses in accounting, representing money spent or costs incurred in an entity's operations to generate revenues.

Closing Journal Entries

Entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts, preparing the books for the next period.

Dividends

Funds distributed to shareholders by a company, typically from its earnings.

Retained Earnings

The portion of a business's profits not distributed to shareholders but reinvested in the business or kept as a reserve.