Paula Logston Is the Owner and Operator of a High-End

question 54

Multiple Choice

Paula Logston is the owner and operator of a high-end online custom clothing company.Paula has never heard of Porter's Five Forces Model,and she wants to understand why she should perform an analysis using it.If you were tasked with explaining Porter's Five Forces Model to Paula,what would be the primary reason she would want to use this type of analysis?

• A) To help Paula choose a clothing business focus.
• B) To help Paula evaluate the attractiveness of the clothing industry.
• C) To help Paula evaluate and execute business goals.
• D) All of these.

---

Definitions:

Filing Status

A category that describes a taxpayer's marital and family situation, affecting the tax rates and standard deductions they are eligible for.

Tax Liability

The total amount of tax owed by an individual, corporation, or other entity to the taxing authority.

Proportional Tax Rate

A tax system where the tax rate remains constant regardless of the amount of income, meaning the tax evolves proportionally with income.

Tax Base

The total amount of assets or revenue that a government can tax, used to determine the tax rate needed to raise required revenues.