In the Context of a SWOT (Strengths, Weaknesses, Opportunities, and Threats)

question 19

Multiple Choice

In the context of a SWOT (strengths, weaknesses, opportunities, and threats) analysis of a company, which of the following is an example of an external opportunity?

• A) Lower costs and higher profit margins
• B) New social trends in the market
• C) Greater restrictions on trade in foreign markets
• D) Aggressive competition in the same industry

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Definitions:

Inventory Shrinkage

The loss of products between the point of manufacture or purchase from suppliers and the point of sale, often due to theft, damage, or errors.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Inventory

The complete stock of goods and raw materials a company maintains for purposes of resale or to be used in the creation of products.

Gross Method

An accounting method for recording purchases at the full invoice price without deducting any cash discounts.