Michael Porter Defined the Five Forces Model and the Potential

question 51

Multiple Choice

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales.Which of the following is not one of the potential pressures that can hurt sales?

• A) Suppliers can drive down profits by charging more for supplies.
• B) New market entrants can steal potential investment capital.
• C) Substitute products can steal customers.
• D) All of these.

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Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting liabilities.

Dividend Policy

A company's approach to distributing profits back to its shareholders either in the form of cash payments or shares of stock.

Firm Value

The total value of a company, determined by its assets, earnings, cash flow, and market perception.