Environmental Analysis Is the Process of Analyzing a Firm's Strengths

question 155

True/False

Environmental analysis is the process of analyzing a firm's strengths and weaknesses as they relate to the external environment of the organization.

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Definitions:

Salvage Value

The estimated concluding value of an asset at the expiration of its functional life.

Simple Rate Of Return

A calculation that measures the profitability of an investment as the annual incremental net operating income divided by the initial investment cost.

Sales Revenues

The total amount of money generated from the sale of goods or services by a company before any costs or expenses are subtracted.

Cash Operating Expenses

Expenses that a company pays in cash during an accounting period, excluding non-cash expenses such as depreciation.