Which of the Following Best Describes Environmental Scanning

question 5

Multiple Choice

 Which of the following best describes environmental scanning?

• A) Forecasting and scanning the likely result that might occur when several events and stakeholders are linked together
• B) A tool where key variables are monitored and modeled to help predict a change that might occur in the environment
• C) The ability to understand the impact of environmental factors on a firm and the ability to understand how to influence those same factors
• D) A tool that managers use to scan the business horizon for key events and trends that will affect the business in the future

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Definitions:

Ratios Variation

Changes or differences in financial ratios over a period, potentially indicating shifts in a company's financial health or performance.

Debt-to-Equity Ratio

A measure used to evaluate a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Financial Statements

Documents that provide an overview of a company's financial condition, including income statements, balance sheets, and statements of cash flows.

Industry Comparison

The process of comparing the statistical measures, performance, and strategies of one company against other companies within the same sector.