A 6ᵗʰ Force-Complements-Should Arguably Be Added to Porter's 5 Forces

question 44

Multiple Choice

A 6ᵗʰ force-complements-should arguably be added to Porter's 5 Forces Model because

• A)Porter's original analysis was inadequate.
• B)it's clear that since Porter devised his model, Complementers have evidently become more important.
• C)Porter's model was developed over 30 years ago, so is old-fashioned.
• D)b and c.

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Definitions:

Dilutive Securities

Financial instruments that could reduce earnings per share if converted to common stock, such as warrants and convertible bonds.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to some of the numbers more than others.

Ordinary Shares

Shares of a company providing ownership rights and potential dividends to holders but usually with voting rights.

Tax Expense

The sum of the current tax and deferred tax charged to an entity's profit or loss for the period.