Which of the Following Is Not One of the Five

question 81

Multiple Choice

Which of the following is not one of the five competitive forces in Michael Porter's classic model of competition?

• A)The threat of new entrants into an industry and its markets.
• B)The bargaining power of suppliers.
• C)Government intervention into labor issues.
• D)The rivalry of competitors within an industry.

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Definitions:

Face Amount

The total amount of money that will be paid at maturity by a financial instrument such as a bond or life insurance policy.

Unamortized Premium

The portion of the premium paid over the par value of a bond that has not yet been expensed in the company's financial statements.

Carrying Amount

The book value of assets and liabilities on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Interest-Bearing Note

A debt instrument that specifies the amount borrowed, interest rate, and maturity date, obligating the borrower to pay interest.