A Study of the External Environment Allows a Manager to Understand

question 111

Multiple Choice

A study of the external environment allows a manager to understand the ________ and ________ for the organization.

• A) threats; weaknesses
• B) strengths; weaknesses
• C) strengths; opportunities
• D) opportunities; threats

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Definitions:

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from net sales revenues, indicating the efficiency of core business operations.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, carried over from the end of the previous period.

Days In Inventory Ratio

A financial metric indicating the average number of days a company holds inventory before selling it, calculated as inventory divided by cost of goods sold, then multiplied by 365 days.

Average Inventory

An accounting measure used to estimate the value of inventory over a certain period by averaging the beginning and ending inventory levels.