According to Michael Porter, Five Competitive Forces Define the Nature

question 65

True/False

According to Michael Porter, five competitive forces define the nature of competitiveness in a given industry: 1) rivalry among competing firms, 2) potential entry of new competitors, 3) potential development of substitute products, 4) bargaining power of suppliers, and 5) bargaining power of consumers.

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Definitions:

Fair Value Method

An accounting approach that assesses and assigns a price to a company's assets and liabilities based on current market value.

Effective Interest Method

A method of calculating the amortized cost of a bond or loan on the basis on an effective interest rate rather than the nominal rate.

Cash Interest

Interest payments made in cash to creditors or bondholders during a specific period.

Trading Securities

Shares or bonds that a company holds with the intention of selling them within a short period for a profit.