Which of the following is a defining characteristic of a SWOT analysis?
A) It examines the diversity at the work place and increases cohesiveness.
B) It is based on the statistical principle of multivariate.
C) It identifies things that inhibit optimum performance achievement.
D) It determines the level of sales needed in order to breakeven.
E) It is based on a year-to-year comparison of a firm's ratios.

Question

Quizplus · Accepted Answer

SWOT analysis is a strategic planning tool that helps identify a business's strengths, weaknesses, opportunities, and threats. The identification of things that inhibit optimum performance achievement is a defining characteristic of a SWOT analysis. Option A is incorrect because diversity and cohesiveness are not necessarily the focus of a SWOT analysis. Option B is incorrect because SWOT analysis does not use multivariate statistical principles. Option D is incorrect because breakeven analysis is not part of a SWOT analysis. Option E is incorrect because SWOT analysis is not based on year-to-year comparisons of financial ratios.

Which of the Following Is a Defining Characteristic of a SWOT