Which of the Following Is Not One of Porter's Five

question 20

Multiple Choice

Which of the following is not one of Porter's five forces that define the task environment?

• A) supplier and buyer power
• B) organization member perceptions
• C) rivalry among competitors
• D) threats of substitutes
• E) threats of entry

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Definitions:

Profit-maximizing Firm

A business entity whose primary goal is to generate the highest possible profit from its operations and investments.

Peak Efficiency

The state of operating at the maximum possible efficiency, where resources are used most effectively and wastage is minimized.

Profits

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Total Profit

Total profit is the financial gain a business achieves after subtracting total costs from total revenue.