Scenario 2.1 Use the Following to Answer the Questions

question 11

Multiple Choice

Scenario 2.1
Use the following to answer the questions.
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company.Employees have been known to dress up in costume on an airplane,engage in "games" with the passengers,and generally provide a fun atmosphere for traveling.While other airlines have low rates of customer satisfaction,Southwest tends to maintain a high rating with its customers.Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum,adding to the negative experience of airline travel.Southwest keeps its costs low through several methods,one being that they do not serve meals on flights,or provide pre-boarding passes.The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country.Southwest is known for its low fares,its dependability,and its on-time flights.
-Refer to Scenario 2.1.In Southwest Airlines' SWOT analysis,the rising gas prices are a(n) ____,while the fact that other airlines are charging for all checked baggage may create a(n) ____.

• A)threat;strength
• B)weakness;strength
• C)threat;opportunity
• D)weakness;opportunity
• E)opportunity;strength

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Definitions:

Grant Date

The specific date on which stock options or grants are awarded to an employee under a stock option plan.

Fair Value Method

The Fair Value Method is an accounting approach that measures and reports assets and liabilities at their fair value or the price they would receive in a current market transaction.

Compensatory Stock Option Plan

A plan offered by a company to its employees as a form of compensation, which grants them the option to buy the company’s stock at a predetermined price.