An Example of a Firm's Strength Discovered by a SWOT

question 32

Multiple Choice

An example of a firm's strength discovered by a SWOT analysis might be:

• A) ownership of valuable patents.
• B) a narrow current product line.
• C) changing buyer tastes in the marketplace.
• D) existing government policies favoring the industry.

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Definitions:

Lower Costs

Refers to a reduction in the expenses incurred in the production of goods or provision of services, potentially leading to higher profitability.

Large Firms

Businesses that operate on a significant scale, typically having extensive operational capacities, manpower, and financial resources.

Profit-maximizing

The strategy or point at which a business makes the highest amount of profit at a given level of production, taking into account its cost structure.

Output

The total amount of goods and services produced by an economic system, company, or machine within a specific period.