What Does the Five Forces Model Help Determine the Relative

question 82

Multiple Choice

What does the Five Forces Model help determine the relative attractiveness of?

• A) An organization
• B) A company
• C) An industry
• D) An investment

---

Definitions:

Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.

Goodwill

An intangible asset that is created from such favorable factors as location, product quality, reputation, and managerial skill.

Boot

The remaining amount a buyer owes after the trade-in allowance when a fixed asset is traded in for a similar asset.

Accumulated Depreciation

Represents the total amount of depreciation expense that has been recorded for a fixed asset since it was put into use.