Which of the Following Is a Primary Feature of the Five

question 96

Multiple Choice

Which of the following is a primary feature of the five forces model?

• A) It is concerned exclusively about the intensity of rivalry among direct competitors.
• B) It takes into account a firm's internal resources, capabilities, and core competencies.
• C) It helps managers determine the changing speed of an industry or the rate of innovation.
• D) It views competition within an industry broadly to include forces such as buyers, suppliers, and the threat of substitutes.

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Definitions:

Bid and Ask Prices

The prices at which buyers are willing to buy (bid) and sellers are willing to sell (ask) a security or asset in the market.

Transaction Cost

Any expenses incurred when buying or selling securities, including broker's fees, taxes, and other charges that can impact the investor's net returns.

Commission

The fee paid to a broker or agent for conducting a transaction, typically a percentage of the transaction value.

Limit Order Book

A record of all open buy and sell orders for a specific security or asset, organized by price level.