- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 12. Introduction to Financial Statement Modeling
- Subject 3. The Impact of Competitive Factors in Prices and Costs
CFA Practice Question
Which is the following is least likely one of Michael Porter's five forces?
A. The threat of substitute products.
B. Bargaining power of suppliers.
C. Government regulations
Correct Answer: C
Government regulations affect a company's profitability. However, they are not among Michael Porter’s five factors. Government regulations should be evaluated based on how they affect the five competitive forces.
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