Which One of Porter's Five Forces Is High When It

question 26

Multiple Choice

Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?

• A) Threat of new entrants.
• B) Threat of substitute products or services.
• C) Threat of buyer power.
• D) Supply chain competition.

---

Definitions:

Forbearance

An agreement between a debtor and lender to temporarily postpone repayment of a loan, often to avoid default.

Illusory Promise

signifies a statement that appears to be a promise but does not actually bind the party making it to a particular action or outcome, thus lacking the substance necessary for a valid contract.

Real Obligation

A legal obligation that is tied to a specific property, requiring the fulfillment of some duty relative to that property.

Unilateral Contract

A contract in which one party makes a promise in exchange for the other party's act, rather than a promise in return.