AGEC 440 Final Exam 2026 Complete Questions
and Guide Answers, 100% Verified Graded A+
1. Porter's 5 Forces
Answer: 1. Threat of entry
2. Threat of rivalry
3. Threat of substitutes
4. Threat of suppliers
5. threat of buyers
2. New entrants are motivated to enter and compete due to above-normal
economic profits earned by existing firms
Answer: Threat of entry
3. the intensity of competition among a firm's direct competitors
Answer: Threat of rivalry
4. Places ceiling on prices in an industry
Reduces profit potential for an industry
Answer: Threat of substitutes
,5. Input supplier can charge above normal economic prices to industry Reduces
industry performance
Answer: Threatofsuppliers
6. Reduces industry revenue via reduced prices
Answer: Threat of buyers
7. Sociocultural trends Technological
trends Government/ Regulatory
trends Economic Trends
Answer: Remote environment
8. Industry analysis based on industrial organization economics (S-C-P)
Answer: Task Envi- ronment
9. - cost leadership
- differentiation
- focus
* can only do 1 at a time
Answer: Generic Strategies
10. Cost leadership
Answer: Be the lowest cost producer
,11. Differentiation
Answer: Produce a ditterentiated or innovative product where there are minimal substitutes
12. Focus
Answer: Specialize in a target market that may be geographical, age, income segments of the market
13. It seeks ways to describes attributes of industry that make it less than
competitive
To help firms find ways to make above normal economic profits
Answer: Strategy perspective
14. Strategy perspective turns framework
Answer: S-C-P ; upside down
15. Any organization external to a firm that reduces the level of that firm's
performance
Answer: Environmental threats
16. economies of scale
capital requirements
access to distribution
Product differentiation/brand identity
, natural cost advantages learning
curve
access to necessary inputs
government policy
Answer: Entry Barriers
17. entry barriers and exit barriers lead to low, stable profits
Answer: Low; low
18. entry barriers and exit barriers lead to high, stable profits
Answer: high; low
19. entry barriers and exit barriers lead to low, unstable profits
Answer: low; high
20. entry barriers and exit barriers lead to high, unstable profits
Answer: high; high
21. First Performance
Answer: directly related to the underlying characteristics of its resources
22. Financial Capital
Answer: capital from entrepreneur's (VC), equity holders, banks, retained earnings
23. Physical Capital
and Guide Answers, 100% Verified Graded A+
1. Porter's 5 Forces
Answer: 1. Threat of entry
2. Threat of rivalry
3. Threat of substitutes
4. Threat of suppliers
5. threat of buyers
2. New entrants are motivated to enter and compete due to above-normal
economic profits earned by existing firms
Answer: Threat of entry
3. the intensity of competition among a firm's direct competitors
Answer: Threat of rivalry
4. Places ceiling on prices in an industry
Reduces profit potential for an industry
Answer: Threat of substitutes
,5. Input supplier can charge above normal economic prices to industry Reduces
industry performance
Answer: Threatofsuppliers
6. Reduces industry revenue via reduced prices
Answer: Threat of buyers
7. Sociocultural trends Technological
trends Government/ Regulatory
trends Economic Trends
Answer: Remote environment
8. Industry analysis based on industrial organization economics (S-C-P)
Answer: Task Envi- ronment
9. - cost leadership
- differentiation
- focus
* can only do 1 at a time
Answer: Generic Strategies
10. Cost leadership
Answer: Be the lowest cost producer
,11. Differentiation
Answer: Produce a ditterentiated or innovative product where there are minimal substitutes
12. Focus
Answer: Specialize in a target market that may be geographical, age, income segments of the market
13. It seeks ways to describes attributes of industry that make it less than
competitive
To help firms find ways to make above normal economic profits
Answer: Strategy perspective
14. Strategy perspective turns framework
Answer: S-C-P ; upside down
15. Any organization external to a firm that reduces the level of that firm's
performance
Answer: Environmental threats
16. economies of scale
capital requirements
access to distribution
Product differentiation/brand identity
, natural cost advantages learning
curve
access to necessary inputs
government policy
Answer: Entry Barriers
17. entry barriers and exit barriers lead to low, stable profits
Answer: Low; low
18. entry barriers and exit barriers lead to high, stable profits
Answer: high; low
19. entry barriers and exit barriers lead to low, unstable profits
Answer: low; high
20. entry barriers and exit barriers lead to high, unstable profits
Answer: high; high
21. First Performance
Answer: directly related to the underlying characteristics of its resources
22. Financial Capital
Answer: capital from entrepreneur's (VC), equity holders, banks, retained earnings
23. Physical Capital
