The Strongest of the Five Forces in Most Industries Is

question 4

Multiple Choice

The strongest of the five forces in most industries is ________.

• A)rivalry among companies competing in the industry
• B)bargaining power of buyers
• C)threat of new entrants to the industry
• D)threat of substitute products or services

---

Definitions:

Accrual-based Net Income

Net income calculated using the accrual basis of accounting, recognizing revenues when earned and expenses when incurred, regardless of when cash is received or paid.

Consolidation Process

The method of combining and presenting the financial statements of a parent and its subsidiaries as one entity, reflecting the total operations of the combined entities.

Treasury Stock Approach

A method used by companies to reduce the share count in the market by buying back their own shares, which can influence earnings per share and other financial ratios.

Voting Stock

Shares that give the shareholder voting rights in a company's corporate decisions.