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:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards for financial reporting.

Material Departure

A significant deviation or divergence from expected, customary, or defined standards or practices, often in financial reporting or auditing.

SEC

The Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.