A Key Limitation of Porter's Five Forces Framework Is That

question 1

Multiple Choice

A key limitation of Porter's five forces framework is that:

• A)I looks only at single industries not at relationships between industries
• B)Competitive strategies may shape industry structure,rather than structure shaping competition
• C)Industries are more complex than can be reduced to five competitive forces
• D)It offers qualitative,not quantitative predictions

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Definitions:

Potential Return

The expected gain or loss from an investment, taking into consideration both the risk and the expected rate of return.

Shareholders

Shareholders are individuals or entities that own shares of stock in a corporation, giving them partial ownership and possibly rights to dividends and a say in company matters.

SEC Registration

The process of filing documents required by the Securities and Exchange Commission prior to offering stock for sale to the public.

Government Regulation

The act of governing or directing according to rules set by the government, typically aiming to ensure fair and ethical business practices and protect consumers.