Business Strategist Michael E

question 85

Multiple Choice

Business strategist Michael E. Porter identified five competitive forces that influence _____ in a model called Porter's Five Forces.

• A) planning strategies
• B) corporate social responsibility
• C) consumer behavior
• D) sustainable development

---

Definitions:

Return On Equity

An assessment of a firm's efficiency in producing profit from its shareholders' investments.

Financial Leverage

The use of borrowed funds ("debt") to amplify returns from an investment or project.

Price Earnings Ratio

A financial metric comparing the current price of a company's stock to its earnings per share to assess whether the stock is undervalued or overvalued.

Earnings Per Share

A financial ratio that measures the amount of a company's profit allocated to each outstanding share of common stock.