Which of the Following Is an Element of Porter's Model

question 100

Multiple Choice

Which of the following is an element of Porter's model for analyzing the competitive environment?

• A) Substitutes and complements.
• B) Cost strategy.
• C) Potential customers.
• D) Regulatory forces.
• E) SBU strategy.

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Definitions:

Equity

The value of an ownership interest in property or a business, calculated as total assets minus total liabilities; represents what the owners' claim on the assets is.

Entity Assumption

The accounting principle that treats a business as a separate legal and accounting entity, distinct from its owners, managers, or operators.

Historical Cost Principle

An accounting principle that assets should be recorded and reported at their original purchase cost.

Going-Concern Assumption

An accounting principle assuming that a company will continue to operate indefinitely and not go bankrupt, impacting financial decisions and reporting.