Which of the Following Is a Limitation Associated with a SWOT

question 40

Multiple Choice

Which of the following is a limitation associated with a SWOT Matrix?

• A) Viewing every business as a Star, Cash Cow, Dog, or Question Mark is an oversimplification.
• B) Many businesses fall right in the middle of the matrix.
• C) It is a static assessment in time.
• D) Other variables besides relative market share position and industry growth rate in sales need to be considered.
• E) The matrix does not reflect whether or not various divisions or their industry are growing over time.

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Definitions:

Uncollectible Account

An account receivable that a company deems unlikely to be collected and thus writes off as a bad debt expense.

Net Income

The total earnings of a company after subtracting all expenses from revenue, representing the profit made in a given period.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available for running day-to-day operations.

Historical Relationship

Patterns or linkages identified through the analysis of past data, often used for forecasting future trends or dynamics.