A Situation Analysis Requires a Firm to Consider the External

question 6

Multiple Choice

A situation analysis requires a firm to consider the external forces and trends that affect it.Some of these may be favorable to the organization while others may be unfavorable.Which of the following is an example of an external force?

• A)The firm buys its own fleet of trucks,so it no longer needs to hire a trucking company for distribution.
• B)A hiring freeze is put into place.Although no one is fired,no one can be hired.
• C)A goal is set to close the gap between production costs and profits.
• D)A local government requires that all businesses within the city limits must recycle or be fined.
• E)Shareholders are rewarded with a sizeable dividend check.

---

Definitions:

Per Capita GDP

A measure of the economic output of a nation per individual, calculated by dividing the country's gross domestic product by its total population.

Developed Countries

Nations with advanced economies, high standards of living, and well-established infrastructure and government systems.

GNPs Per Person

A metric that measures a country's gross national product divided by its population, indicating the average economic output per person.

Annual Population Growth

Annual Population Growth refers to the rate at which the number of individuals in a population increases in a year, considering factors such as birth rates, death rates, and migration.