One Weakness of Porter's Five-Forces Model Is That It Assumes

question 38

True/False

One weakness of Porter's five-forces model is that it assumes that firm resources are the primary determinants of industry profitability.

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Definitions:

Credit Sales

Sales of goods or services that are not immediately paid for by the customer, leading to the creation of account receivables.

Direct Labour

Labor costs for employees who are directly involved in manufacturing goods or providing services, distinct from indirect labor costs.

Sales Units

The number of units of a product sold over a specific period of time.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered but not yet paid for.