According to Porter, the First Step in Predicting the Behaviors

question 26

Multiple Choice

According to Porter, the first step in predicting the behaviors of competitors is ________.

• A) to determine if the companies are publicly held
• B) to understand the companies' current strategies
• C) to understand the companies' objectives
• D) to determine the companies' industry assumptions

---

Definitions:

Rate of Return

The gain or loss on an investment over a specific period, expressed as a percentage of the investment's cost.

Nominal Rate

the interest rate before adjustments for inflation, often cited in loan and savings agreements.

Compounded Annually

Interest on a loan or investment is calculated once a year, with each year’s interest added to the principal for the subsequent year’s interest calculation.

Compounded Annually

The process of earning interest on an investment where the accrued interest is added to the principal sum once per year.