By Emphasizing the Importance of Identifying Opportunities and Threats,the SWOT

question 85

Multiple Choice

By emphasizing the importance of identifying opportunities and threats,the SWOT framework makes firms act ________ rather than ________.

• A) quickly; slowly
• B) immediately; eventually
• C) proactively; reactively
• D) intelligently; uninformed

Understand the relationship between marginal cost, marginal revenue, and profit maximization

Describe the conditions for a firm to operate, shut down, or leave the industry in the short run and long run

Explain the significance of the break-even and shutdown points for a firm's operation

Understand the concept of efficiency in the context of production and marginal analysis

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Definitions:

Current Ratio

A financial metric used to measure a company's ability to pay its short-term liabilities with its short-term assets.

Debt Ratio

A financial ratio that compares the amount of debt a company has to its total assets.

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a given period, indicating the efficiency of inventory management.

Current Ratio

A financial metric that measures a company's ability to pay short-term obligations with its current assets.