The Model Most Commonly Used to Help an Entrepreneur Analyze

question 46

Multiple Choice

The model most commonly used to help an entrepreneur analyze an industry is ____.

• A)Porter's Four Forces Model
• B)Porter's Five Forces Model
• C)the PEST Model
• D)the SWOT Analysis Model
• E)None of these choices

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Definitions:

Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at a set price within a specific period.

Firm Completion

A commitment to finish a project or deliver a product by a specified date.

Asymmetric Information

Assumes managers have more complete information than investors about a firm’s prospects—can have an important effect on capital structure.

Diversified Portfolios

Investment strategies involving the mixing of various asset classes and securities to reduce risk through diversification.