The Five-Forces Model Identifies the Basic Structure of an Industry

question 62

Multiple Choice

The five-forces model identifies the basic structure of an industry and is used to study its characteristics. One of the elements in the component, called "threat of new entrants," contains ________.

• A) industry concentration
• B) proprietary products
• C) buyer volume
• D) differentiation of inputs

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Definitions:

Net Income

The net income a firm retains after deducting all operational expenses and taxes from its gross revenue.

Net Cash

The amount of cash available after adjusting for cash inflows and outflows over a given period.

Financing Activities

Transactions and events that involve raising funds for the company and repaying funds to investors, such as issuing stock or borrowing.

Cash Dividend

A payment made by a company out of its profits to shareholders in the form of cash.