BACKFLOW ACTUAL EXAM PAPER
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Porter's 5 Forces.
Answer: 1. Threat of entry2. Threat of rivalry 3. Threat of substitutes 4.
Threat of suppliers5. threat of buyers
◍ New entrants are motivated to enter and compete due to above-normal
economic profits earned by existing firms.
Answer: Threat of entry
◍ the intensity of competition among a firm's direct competitors.
Answer: Threat of rivalry
◍ Places ceiling on prices in an industryReduces profit potential for an
industry.
Answer: Threat of substitutes
◍ Input supplier can charge above normal economic prices to industryReduces
industry performance.
Answer: Threat of suppliers
◍ Reduces industry revenue via reduced prices.
Answer: Threat of buyers
◍ Sociocultural trendsTechnological trendsGovernment/ Regulatory
trendsEconomic Trends.
Answer: Remote environment
◍ Industry analysis based on industrial organization economics (S-C-P).
Answer: Task Environment
◍ - cost leadership- differentiation - focus * can only do 1 at a time.
, Answer: Generic Strategies
◍ Cost leadership.
Answer: Be the lowest cost producer
◍ Differentiation.
Answer: Produce a differentiated or innovative product where there are
minimal substitutes
◍ Focus.
Answer: Specialize in a target market that may be geographical, age, income
segments of the market
◍ It seeks ways to describes attributes of industry that make it less than
competitiveTo help firms find ways to make above normal economic profits.
Answer: Strategy perspective
◍ Strategy perspective turns __________ framework _____________.
Answer: S-C-P ; upside down
◍ Any organization external to a firm that reduces the level of that firm's
performance.
Answer: Environmental threats
◍ economies of scalecapital requirementsaccess to distributionProduct
differentiation/brand identitynatural cost advantageslearning curveaccess to
necessary inputsgovernment policy.
Answer: Entry Barriers
◍ ______ entry barriers and ______ exit barriers lead to low, stable profits.
Answer: Low; low
◍ _____ entry barriers and ______ exit barriers lead to high, stable profits.
Answer: high; low
◍ _____ entry barriers and ______ exit barriers lead to low, unstable profits.
Answer: low; high
◍ _____ entry barriers and ______ exit barriers lead to high, unstable profits.
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Porter's 5 Forces.
Answer: 1. Threat of entry2. Threat of rivalry 3. Threat of substitutes 4.
Threat of suppliers5. threat of buyers
◍ New entrants are motivated to enter and compete due to above-normal
economic profits earned by existing firms.
Answer: Threat of entry
◍ the intensity of competition among a firm's direct competitors.
Answer: Threat of rivalry
◍ Places ceiling on prices in an industryReduces profit potential for an
industry.
Answer: Threat of substitutes
◍ Input supplier can charge above normal economic prices to industryReduces
industry performance.
Answer: Threat of suppliers
◍ Reduces industry revenue via reduced prices.
Answer: Threat of buyers
◍ Sociocultural trendsTechnological trendsGovernment/ Regulatory
trendsEconomic Trends.
Answer: Remote environment
◍ Industry analysis based on industrial organization economics (S-C-P).
Answer: Task Environment
◍ - cost leadership- differentiation - focus * can only do 1 at a time.
, Answer: Generic Strategies
◍ Cost leadership.
Answer: Be the lowest cost producer
◍ Differentiation.
Answer: Produce a differentiated or innovative product where there are
minimal substitutes
◍ Focus.
Answer: Specialize in a target market that may be geographical, age, income
segments of the market
◍ It seeks ways to describes attributes of industry that make it less than
competitiveTo help firms find ways to make above normal economic profits.
Answer: Strategy perspective
◍ Strategy perspective turns __________ framework _____________.
Answer: S-C-P ; upside down
◍ Any organization external to a firm that reduces the level of that firm's
performance.
Answer: Environmental threats
◍ economies of scalecapital requirementsaccess to distributionProduct
differentiation/brand identitynatural cost advantageslearning curveaccess to
necessary inputsgovernment policy.
Answer: Entry Barriers
◍ ______ entry barriers and ______ exit barriers lead to low, stable profits.
Answer: Low; low
◍ _____ entry barriers and ______ exit barriers lead to high, stable profits.
Answer: high; low
◍ _____ entry barriers and ______ exit barriers lead to low, unstable profits.
Answer: low; high
◍ _____ entry barriers and ______ exit barriers lead to high, unstable profits.
