According to Michael Porter,there Are Five Determinants of Competition

question 33

Multiple Choice

According to Michael Porter,there are five determinants of competition.An example of _____ is when the availability limits the prices that can be charged to customers.

• A)Threat of Entry
• B)Rivalry between Existing Competitors
• C)Pressure from Substitute Products
• D)Bargaining power of Buyers
• E)Bargaining power of Suppliers

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Definitions:

Financial Leverage

The use of borrowed funds to increase potential return on investment.

Operating Cash Flows

The cash generated from the normal operations of a business, including the production and sale of goods or services.

Marketability

The ease with which an asset can be bought or sold in the market without affecting its price.

Operating Cash Flow

The cash generated from a company's normal business operations before financing and investment activities.