Which Factor, Listed in a Situation Analysis for a Major

question 2

Multiple Choice

Which factor, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity as identified by a SWOT analysis?

• A)The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity.
• B)Recent consumer studies have indicated that Chinese consumers prefer American cars.
• C)A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.
• D)Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors.
• E)The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to adjust the income and expenditure records for accuracies in financial reporting.

Financial Statements

Reports that provide detailed information about a company's financial position and performance, including the balance sheet, income statement, and cash flow statement.

Accounting System

A systematic arrangement of both manual and automated accounting processes, techniques, and safeguards designed to collect, document, categorize, scrutinize, condense, elucidate, and convey precise and up-to-date financial information.

Supplies Account

An account that tracks the cost of supplies on hand and consumed by a business, which can be adjusted through adjusting entries for accurate financial reporting.