According to the Textbook, the Five Competitive Forces Included in Five-Forces

question 17

Multiple Choice

According to the textbook, the five competitive forces included in five-forces model determine:

• A) the average rate of new business starts in an industry
• B) the average growth rate for the firms in an industry
• C) the average rate of return for the firms in an industry
• D) the average sales for the firms in an industry
• E) the average failure rate for the firms in an industry

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Financing Activities

Actions that result in changes in the size and composition of the equity capital or borrowings of an entity.

Accounts Payable

An account showing the amount of money owed by a company to its creditors for goods or services that have been delivered or used but not yet paid for.

Operations Section

The operations section of a business plan outlines how the company will function on a day-to-day basis, covering production, facilities, and logistics.