Describe Porter's Five Forces Model, and explain each of the five forces.
What will be an ideal response?
Porter's Five Forces Model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. Buyer power is the ability of buyers to affect the price they must pay for an item. Supplier power is the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services). Threat of substitute products or services is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose. Threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market. Rivalry among existing competitors is high when competition is fierce in a market and low when competition is more complacent.
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The reservation price, the maximum that most consumers will pay for a given product, is known as the ________ price
A) expected future B) usual discounted C) upper-bound D) typical E) historical competitor
Valuing inventory at the lower of cost or market is an application of the:
a. time period assumption. b. realization principle. c. going concern principle. d. conservatism principle. e. None of the answers are correct.
Which of the following would not be included in Cash or Cash Equivalents?
a. Ninety-day U.S. Treasury bills held b. Deposits in bank checking accounts c. Checks and money orders received from customers d. Six-month certificates of deposit held
Analyze the reaction of Toyota from an ethical perspective to disclosures that occurred in late 2009 and early 2010 that the accelerator in some brands might get stuck and result in unintended acceleration of the car. How does Toyota's reaction relate to that of Ford with the Pinto and Johnson & Johnson with the Tylenol poisoning?
What will be an ideal response?