According to the Business Strategy Model Developed by Harvard Business

question 136

Multiple Choice

According to the business strategy model developed by Harvard Business professor Michael Porter's, an industry's profit potential is largely determined by _____________.

• A) The intensity of competitive forces within the industry
• B) Availability of necessary resources to produce the product/service
• C) Technological proficiency of companies in the industry
• D) Availability of skilled and unskilled labor

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Definitions:

Tax Rate

The rate at which taxes are levied on an individual or a business entity.

Defense Expenditures

The amount of funding allocated by a nation for its military forces and activities, including salaries, equipment, research, and development.

Automatic Stabilizers

Economic policies and programs that automatically adjust to temper the fluctuations in an economy, such as unemployment insurance and progressive taxes.

Annual Deficit

The shortfall that occurs when a government's expenditures exceed its revenues within a one-year period.