What Is the Rule of Thumb Behind Porter's Five Forces

question 23

Multiple Choice

What is the rule of thumb behind Porter's five forces model?

• A) The stronger the five forces, the greater the industry's profit potential-making the industry less attractive.
• B) The stronger the five forces, the lower the industry's profit potential-making the industry more attractive.
• C) The weaker the five forces, the greater the industry's profit potential-making the industry more attractive.
• D) The weaker the five forces, the lower the industry's profit potential-making the industry less attractive.

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Definitions:

Heifers

Young female cattle that have not yet born a calf, often raised for beef or kept for breeding purposes.

AASB 116

This Australian Accounting Standards Board standard pertains to Property, Plant, and Equipment, covering its recognition, measurement, and disclosure.

IAS 16

International Accounting Standard that prescribes the accounting treatment for property, plant, and equipment.

AASB 141

Refers to the Australian Accounting Standards Board's standard on Agriculture, which guides how agricultural activities and products should be accounted for and reported in financial statements.