When a Company Makes Use of SWOT Analysis,one of Its

question 69

Multiple Choice

When a company makes use of SWOT analysis,one of its objectives is to do which of the following?

• A) identify the best employees to fill each position within the organization
• B) set specific short-term performance standards for each department
• C) evaluate the desirability of issuing stocks or bonds in the current financial climate
• D) identify the things it does well as an organization and the things it needs to improve

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Definitions:

Survivorship Bias

The analytical error of focusing only on entities that have "survived" a selection process, ignoring those that have failed.

Infrequently-Traded Assets

Assets that do not trade on a regular basis on the secondary market, making their valuation and liquidity different from frequently traded assets.

Liquidity Premiums

Additional returns investors demand for holding securities that are not easily convertible to cash without a loss in value.

Mispricing

The occurrence when the market price of an asset does not accurately reflect its intrinsic value, possibly due to information asymmetry, market inefficiency, or other factors.