As Part of a Strategic Planning Process, Midwest Power's Senior

question 43

Multiple Choice

As part of a strategic planning process, Midwest Power's senior executives determined positive findings from their SWOT analysis: (1) New regulations will provide tax credits for renewable ("green") power sources. (2) Their customers will pay higher prices for green power. (3) A competing power utility that owns renewable power sources is struggling and might be a target to be acquired by Midwest Power. (4) As compared to their competitors, Midwest Power's management team is one of the best in the industry. A strength of Midwest Power, per the SWOT analysis, is that

• A) new regulations will provide tax credits for renewable power sources.
• B) their customers will pay higher prices for green power.
• C) a competing power utility is struggling.
• D) the competing power utility might be a target to be acquired.
• E) their management team is one of the most skilled in the industry.

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Definitions:

Wholly Owned

A company whose entire share capital is 100% owned by another company, making it a complete subsidiary.

Unrealized Profit

Profits that have been accounted for but not yet realized through a transaction, such as stocks that have increased in value but have not been sold.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, and operating results of a parent company and its subsidiaries as one entity.

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period.