AGEC 440 Final Exam Study Guide 2026 | Complete Review, Practice
Questions & Exam Prep
Porter's 5 Forces - correct answer ✔✔1. Threat of entry
2. Threat of rivalry
3. Threat of substitutes
4. Threat of suppliers
5. threat of buyers
New entrants are motivated to enter and compete due to above-normal economic profits
earned by existing firms - correct answer ✔✔Threat of entry
the intensity of competition among a firm's direct competitors - correct answer ✔✔Threat of
rivalry
Places ceiling on prices in an industry
Reduces profit potential for an industry - correct answer ✔✔Threat of substitutes
Input supplier can charge above normal economic prices to industry
Reduces industry performance - correct answer ✔✔Threat of suppliers
Reduces industry revenue via reduced prices - correct answer ✔✔Threat of buyers
Sociocultural trends
Technological trends
Government/ Regulatory trends
Economic Trends - correct answer ✔✔Remote environment
,Industry analysis based on industrial organization economics (S-C-P) - correct answer ✔✔Task
Environment
- cost leadership
- differentiation
- focus
* can only do 1 at a time - correct answer ✔✔Generic Strategies
Cost leadership - correct answer ✔✔Be the lowest cost producer
Differentiation - correct answer ✔✔Produce a differentiated or innovative product where there
are minimal substitutes
Focus - correct 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 competitive
To help firms find ways to make above normal economic profits - correct answer ✔✔Strategy
perspective
Strategy perspective turns __________ framework _____________ - correct answer ✔✔S-C-P ;
upside down
Any organization external to a firm that reduces the level of that firm's performance - correct
answer ✔✔Environmental threats
economies of scale
, capital requirements
access to distribution
Product differentiation/brand identity
natural cost advantages
learning curve
access to necessary inputs
government policy - correct answer ✔✔Entry Barriers
______ entry barriers and ______ exit barriers lead to low, stable profits - correct answer
✔✔Low; low
_____ entry barriers and ______ exit barriers lead to high, stable profits - correct answer
✔✔high; low
_____ entry barriers and ______ exit barriers lead to low, unstable profits - correct answer
✔✔low; high
_____ entry barriers and ______ exit barriers lead to high, unstable profits - correct answer
✔✔high; high
First Performance - correct answer ✔✔directly related to the underlying characteristics of its
resources
Financial Capital - correct answer ✔✔capital from entrepreneur's (VC), equity holders, banks,
retained earnings
Questions & Exam Prep
Porter's 5 Forces - correct answer ✔✔1. Threat of entry
2. Threat of rivalry
3. Threat of substitutes
4. Threat of suppliers
5. threat of buyers
New entrants are motivated to enter and compete due to above-normal economic profits
earned by existing firms - correct answer ✔✔Threat of entry
the intensity of competition among a firm's direct competitors - correct answer ✔✔Threat of
rivalry
Places ceiling on prices in an industry
Reduces profit potential for an industry - correct answer ✔✔Threat of substitutes
Input supplier can charge above normal economic prices to industry
Reduces industry performance - correct answer ✔✔Threat of suppliers
Reduces industry revenue via reduced prices - correct answer ✔✔Threat of buyers
Sociocultural trends
Technological trends
Government/ Regulatory trends
Economic Trends - correct answer ✔✔Remote environment
,Industry analysis based on industrial organization economics (S-C-P) - correct answer ✔✔Task
Environment
- cost leadership
- differentiation
- focus
* can only do 1 at a time - correct answer ✔✔Generic Strategies
Cost leadership - correct answer ✔✔Be the lowest cost producer
Differentiation - correct answer ✔✔Produce a differentiated or innovative product where there
are minimal substitutes
Focus - correct 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 competitive
To help firms find ways to make above normal economic profits - correct answer ✔✔Strategy
perspective
Strategy perspective turns __________ framework _____________ - correct answer ✔✔S-C-P ;
upside down
Any organization external to a firm that reduces the level of that firm's performance - correct
answer ✔✔Environmental threats
economies of scale
, capital requirements
access to distribution
Product differentiation/brand identity
natural cost advantages
learning curve
access to necessary inputs
government policy - correct answer ✔✔Entry Barriers
______ entry barriers and ______ exit barriers lead to low, stable profits - correct answer
✔✔Low; low
_____ entry barriers and ______ exit barriers lead to high, stable profits - correct answer
✔✔high; low
_____ entry barriers and ______ exit barriers lead to low, unstable profits - correct answer
✔✔low; high
_____ entry barriers and ______ exit barriers lead to high, unstable profits - correct answer
✔✔high; high
First Performance - correct answer ✔✔directly related to the underlying characteristics of its
resources
Financial Capital - correct answer ✔✔capital from entrepreneur's (VC), equity holders, banks,
retained earnings
