Which of the Following Statements Is a Drawback of Porter's

question 31

Multiple Choice

 Which of the following statements is a drawback of Porter's 5-Forces Model?

• A) It cannot be used to evaluate the structural components of an industry.
• B) This tool is particularly not useful in helping managers decide where to focus.
• C) Evaluating the attractiveness of industries and developing business-level strategy is seldom possible.
• D) The 5-Forces Model typically looks at an industry at one point in time.

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Definitions:

Open Market Operations

Activities conducted by central banks to buy or sell government securities in the open market to control the money supply and interest rates.

Money Supply Control

The regulation of the amount of money in circulation by a central authority, typically a country’s central bank, to achieve economic objectives.

Open Market Operations

The buying and selling of government securities by a central bank in order to control the money supply and interest rates in the economy.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.