Porter's Five-Forces Model Identifies Forces That Determine the Basic Structure

question 27

True/False

Porter's five-forces model identifies forces that determine the basic structure of an industry.

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Definitions:

Natural Resource

Refers to resources found in nature that are used for economic gain, such as minerals, forests, water, and land.

Depletion

Amount of natural resources that has been exhausted by mining, pumping, and so forth for a period of time.

Patent

A legal right granted by the government to an inventor, giving them exclusive rights to make, use, sell, and import an invention for a certain period of time.

Amortization Expense

An operating expense on the income statement relating to intangible assets.