Which of the Following Statements About Porter's Five Forces Model

question 107

Multiple Choice

Which of the following statements about Porter's five forces model is accurate?

• A) The potential profit of a company is caused mostly by random factors instead of by industry-specific factors.
• B) Competition must be defined narrowly to focus on the closest competitors and plan ways increase profit potential.
• C) Competition must be defined in a broad way to incorporate all of the key factors that influence profit potential.
• D) The potential profit of a company is caused by two forces: threat of substitutes and rivalry among existing firms.

---

Definitions:

Cellular Respiration

The process by which cells convert glucose and oxygen into ATP, releasing carbon dioxide and water.

Inspiration

Act of taking air into the lungs; inhalation.

Gases Exchange

The process of oxygen and carbon dioxide moving between the bloodstream and the lungs in animals, and the atmosphere and cells in plants.

Diffusion

The process by which molecules spread from areas of high concentration to areas of low concentration, often leading to equilibrium.