Porter's Five Forces Model Did Not Recognize The

question 73

Multiple Choice

Porter's Five Forces model did not recognize the:

• A) power of complement providers.
• B) risk of entry by potential competitors.
• C) intensity of rivalry among established companies within an industry.
• D) bargaining power of suppliers.
• E) closeness of substitutes to an industry's products.

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Definitions:

Manufacturing Overhead

Factory overhead expenses that arise during the production process of a product.

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Step-Variable Cost

Costs that are fixed over a small range of activity but can change with significant changes in the volume of activity.

Sunk Cost

Expenses already incurred and which cannot be recovered, and should not be considered when making future business decisions.