According to Porter, Industry Attractiveness Is Not Enough to Justify

question 36

True/False

According to Porter, industry attractiveness is not enough to justify diversification. There needs to be additional competitive advantage, and the entry cost should not be more than the profits are worth

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Definitions:

Net Income

The amount of money remaining after all operating expenses, taxes, and costs have been subtracted from total revenues.

Sales

Sales refer to the revenue earned from selling goods or services over a period of time.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period.

Inventory

Inventory refers to the goods and materials that a business holds for the ultimate goal of resale or processing.