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

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Definitions:

Perpetual Cash Flow

Cash flow that continues indefinitely, often used in valuation models for companies or investments with steady income streams.

Listed Beta

A measure of a stock's volatility in relation to the overall market, calculated and reported by financial exchanges or services.

True Beta

A measure of a stock's volatility in relation to the market, adjusted for its unique characteristics and the market environment.

Mutual-fund Theorem

A principle in finance that suggests diversifying investments across a broad range of assets to reduce risk without sacrificing return, associated with the modern portfolio theory.