According to Porter, What Is Usually the Most Powerful of the Five

question 43

Multiple Choice

According to Porter, what is usually the most powerful of the five competitive forces?

• A) Potential development of substitute products
• B) Bargaining power of suppliers
• C) Bargaining power of consumers
• D) Rivalry among competing firms
• E) Potential entry of new competitors

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Definitions:

Net Present Value

A financial metric that calculates the current value of all future cash flows generated by a project, minus the initial investment cost.

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.

Net Present Value

This is the calculation used to find the present value of cash flows from an investment, adjusted for time and interest, to determine profitability.

Initial Investment

The initial amount of money spent to purchase an asset, start a project, or launch a business venture, serving as a baseline for measuring future returns.