Which of the Following Is Not True of the SWOT

question 38

Multiple Choice

Which of the following is not true of the SWOT analysis?

• A) SWOT stands for strengths, weaknesses, opportunities, and threats.
• B) Strengths and weaknesses are found in the internal analysis of the firm.
• C) The SWOT analysis tells the firm what strategies to pursue.
• D) The objective is to analyze factors from both inside and outside the organization that may influence success.

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Definitions:

Cash Dividends

Payments made by a company out of its profits to its shareholders, usually in the form of cash.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair market value of an acquired company's identifiable assets and liabilities.

Fair Value

The estimated market value of an asset or liability in an arm's length transaction between informed and willing parties.

Investment Income

Income received from the assets invested in, such as dividends, interest, or rental income.