Which of the Following Statements Concerning SWOT Analysis Is False

question 102

Multiple Choice

Which of the following statements concerning SWOT analysis is false?

• A) Strengths are the factors that give the firm a comparative advantage in the marketplace.
• B) Weaknesses result when the company has potentially exploitable advantages over other firms.
• C) Opportunities are environmental factors that favor the firm.
• D) Threats are environmental factors that can hinder the firm in achieving its goals.
• E) None of the above (that is, all statements are true)

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Definitions:

Information Overload

A situation where an individual is exposed to more information than they can effectively process or manage.

Excess Cash

Surplus funds that exceed the normal operating needs of a business, often invested in short-term securities or used for acquisitions.

Fair Value Adjustment

An accounting process of updating the reported value of an asset or liability to reflect its current market value.

Noncontrolling Interest

An ownership position in a corporation in which the shareholder does not have sufficient voting power to enact changes or control the company’s operations.