The Threat of Substitution in Porter's Model Concerns the Danger

question 96

True/False

The threat of substitution in Porter's model concerns the danger of customers taking their business elsewhere.

---

Definitions:

Net Income

The amount of profit left over after all operating expenses, taxes, and interest payments have been deducted from total revenue.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional stock.

Treasury Stock

Shares that were once part of the outstanding shares but were bought back by the issuing company.

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and a dividend entitlement.