PESTEL Analysis Differs from the Five Forces Analysis in That

question 29

Multiple Choice

PESTEL analysis differs from the five forces analysis in that PESTEL analysis is used for:

• A) analyzing a firm's strengths and weaknesses along with the opportunities and threats that exist in the firm's environment.
• B) evaluating strategic groups in order to understand gaps in the industry that represent untapped opportunities.
• C) analyzing how much profit potential exists in an industry.
• D) evaluating profit potential of an organization's various business units or product lines.
• E) organizing factors within the general environment and identifying how these factors influence industries and the firms within them.

Measure the impact of credit card sales on company finances.

Discriminate between the direct write-off and allowance methods for estimating uncollectibles.

Evaluate the financial advantages of using promissory notes over accounts receivable.

Identify the number of bones in various parts of the human body.

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Definitions:

Liver

A large, complex organ that secretes bile, helps maintain homeostasis by removing or adding nutrients to the blood, and performs many other metabolic functions.

Bile

A digestive fluid produced by the liver, stored in the gallbladder, and released into the small intestine, important for the digestion and absorption of lipids.

Enzymatically

Pertaining to the process or action facilitated by enzymes, which are proteins that catalyze biochemical reactions.

Jejunum

The middle section of the small intestine in most higher vertebrates, including humans, where the absorption of nutrients and minerals from digested food occurs.