According to Porter's Diamond, What Are Factor Endowments

question 31

Multiple Choice

According to Porter's diamond, what are factor endowments?

• A)The position of a nation regarding the components of production necessary to compete in a given industry
• B)The presence or absence of related industries that are internationally competitive
• C)The conditions governing how companies are created, organized, and managed and the nature of domestic rivalry
• D)The nature of home demand for the industry's product or service
• E)The economic and strategic advantages that accrue to early entrants into an industry

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Definitions:

Basic Earnings Per Share

A measure of a company's profitability that shows how much of its profits are allocated to each share of common stock.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains unchanged.

Basic Earnings Per Share

A calculation that measures the profitability available to a company's common shareholders, dividing net income by the number of common shares outstanding.

Convertible Securities

Financial instruments, such as bonds or preferred shares, that can be converted into a specified number of another type, typically common stock, at a predetermined price.