What Is a SWOT Analysis

question 116

Multiple Choice

What is a SWOT analysis?

• A) Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.
• B) Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
• C) View of a firm as a series of business processes, each of which adds value to the product or service.
• D) Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are a set of rules and guidelines used to prepare and present financial statements in the U.S.

Collateralized Borrowing

A method of borrowing where the borrower pledges an asset as security or collateral for the loan, which the lender can claim if the loan is not repaid.

Trouble Debt Restructuring

A process whereby terms of a debt are modified due to the financial difficulties of the borrower, typically resulting in reduced interest rates or extended payment schedules.

Financial Reporting

The process of producing statements that disclose an entity's financial status to management, investors, and the government.