In the Development of a SFAS Matrix, the First Step

question 82

Multiple Choice

In the development of a SFAS matrix, the first step is to

• A)enter the ratings of how the company's management is responding to each of the strategic factors.
• B)calculate the weighted scores.
• C)list the most important EFAS and IFAS items.
• D)indicate short-term for the duration.
• E)enter the weights for all of the internal factors.

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Definitions:

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specific period, often calculated as the income and capital gains during the period.

Strike Price

The fixed price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a fixed period.

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for a business or investment.