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.

Understand the concepts of risk, including liquidity, inflation, and interest rate risks, in financial planning.

Recognize the importance of time value of money in financial planning.

Identify and develop personal financial goals and understand the financial planning process.

Understand the components and importance of financial planning.

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Definitions:

Bond's Discount

The difference between the face value of a bond and its selling price when sold for less than its face value.

Amortized

The gradual reduction of a debt over a period of time by making regular payments of interest and principal sufficient to repay the loan by maturity.

Straight-Line Method

Straight-Line Method is a form of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Amortization of Bonds

The gradual reduction of the discount on bonds payable or the premium on bonds receivable over the life of the bonds.