What Is an Advantage of a SWOT Analysis

question 17

Multiple Choice

What is an advantage of a SWOT analysis?

• A) It deliberates on the optimum use of organizational resources.
• B) It gives an organization a competitive advantage.
• C) It is an external analysis of environmental opportunities and threats.
• D) It analysis the external factors that give way to organizational weaknesses.
• E) It defines specific objectives that an organization must accomplish.

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Definitions:

Acquirer's Stockholders

Individuals or entities that own shares in a company that is acquiring another company, potentially affected by the acquisition's financial outcomes.

Post-Merger Cash Flows

The net amount of cash that a company generates or consumes after completing a merger or acquisition.

Synergies

Refers to the potential financial benefit achieved through the combining of companies, resources, or assets to create value greater than what those entities could produce independently.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, through scaling up.