The TOWS Matrix Illustrates How the External Opportunities and Threats

question 78

True/False

The TOWS Matrix illustrates how the external opportunities and threats facing a particular corporation can be matched with that company's internal strengths and weaknesses to result in four sets of possible strategic alternatives.

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Definitions:

Yield

It refers to the earnings generated and realized on an investment over a particular period, expressed as a percentage.

Duration

A measure of the average life of a bond, defined as the weighted average of the times until each payment is made, with weights proportional to the present value of the payment.

Bond

A fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Zero-Coupon Bond

A bond paying no coupons that sells at a discount and provides only payment of face value at maturity.