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.

Calculate account balances based on debit and credit entries.

Grasp the process and purpose of transferring transaction information to ledger accounts.

Understand the structure and significance of a chart of accounts.

Recognize the treatment of deferred revenues in financial statements.

---

Definitions:

Indefinitely

An unspecified period of time that may continue forever, without a predetermined endpoint.

Dividend

A portion of a company's earnings distributed to its shareholders, usually periodically.

Preferred Stock

A type of stock that provides dividends before common stock and has priority over common stock in the event of liquidation.

Annual Dividend

The total amount of dividends a company pays out to its shareholders in one fiscal year.