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.

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Definitions:

Trophic Category

A classification describing the position of organisms within a food chain, based on their feeding relationships and energy transfer.

Detritivore

An organism that feeds on dead organic matter, largely contributing to decomposition and nutrient recycling in ecosystems.

Earthworm

Earthworms are tube-shaped, segmented worms found in soil that play a crucial role in aerating soil and breaking down dead organic matter.

Decomposer

An organism, usually a bacterium or fungus, that breaks down dead cells and materials, recycling nutrients back into the ecosystem.