Which of the Following Is the First Step in Developing

question 34

Multiple Choice

Which of the following is the first step in developing a QSPM?

• A) Compute the Total Attractiveness Scores.
• B) Examine the Stage 2 matrices and identify alternative strategies the organization should consider implementing.
• C) Assign weights to each key external and internal factor.
• D) Determine the Attractiveness Scores.
• E) Make a list of the firm's key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM.

---

Definitions:

Liquidity Ratios

Financial ratios that measure a company's ability to meet its short-term obligations with its liquid assets.

Trade Credit

A type of commercial financing where a business allows its customers to purchase goods or services and pay for them at a later date.

Financial Leverage

Leveraging financing to heighten the potential outcomes of an investment.

Current Ratio

A metric that assesses an organization's capability to cover its current liabilities with its existing assets.