The Five Competitive Forces Model Was Developed by

question 115

Multiple Choice

The five competitive forces model was developed by

• A)Michael Porter.
• B)John Nash.
• C)Michael Spence.
• D)Porter Smith.

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Definitions:

Compensating Balance

A minimum account balance that a firm agrees to maintain in a bank account, often used to secure a loan or line of credit.

Accounts Payable

Short-term liabilities representing amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Factoring

A financial transaction and a type of debtor finance where a business sells its accounts receivable to a third party (the factor) at a discount.

Net Working Capital

measures a company's short-term financial health by subtracting its current liabilities from its current assets, indicating the liquidity available to fund day-to-day operations.