Generally, an Industry Is More Attractive When Quality Substitute Products

question 38

True/False

Generally, an industry is more attractive when quality substitute products are not readily available, the prices of substitute products are higher, and buyers' costs of switching products is high.

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Definitions:

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit.

IRA Contribution

Money placed into an individual retirement account (IRA) that may qualify for tax deductions or other tax advantages.

AGI

Adjusted Gross Income; a determinant of tax liability calculated by adjusting gross income for certain allowable deductions.

Qualified Pension Plan

A retirement plan that meets the requirements set by the Internal Revenue Code, thereby offering tax benefits such as tax-deferred growth on earnings and deductible contributions for the employer.