According to Michael E

question 44

True/False

According to Michael E. Porter, the attractiveness of an industry, or how profitable an industry can be for a company, is the result of five competitive pressures in the market: rivalry or competition, buyers of the product or service, potential new organizations entering into the industry, suppliers of resources needed by the organization, and substitute products or alternative services that a customer can choose.

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Definitions:

Periodic Inventory System

An inventory accounting system where inventory levels are updated and cost of goods sold is calculated at the end of an accounting period.

Perpetual Inventory System

A method of keeping track of inventory in real-time, where inventory levels are updated after every sale or purchase transaction.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for the cost of shipping and risk of loss from the shipping point.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, detailing the repayment period, any discounts for early payment, and penalties for late payment.