- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 6. Industry and Competitive Analysis
- Subject 1. Uses of Industry Analysis
CFA Practice Question
In the long run, ______ result in profitability differences by industry.
B. company-specific factors
C. structure factors
A. business cycles
B. company-specific factors
C. structure factors
Correct Answer: C
Michael Porter's five competitive forces framework suggests that the structure of an industry influences profitability differences among companies operating within it. The five forces can create variations in profitability across industries.
User Contributed Comments 0
You need to log in first to add your comment.