Practice Test: IB Business And Management- Business Organisation & Environment #1.6
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Fill in the missing gap: Opportunities Strengths ___________ Weaknesses
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- 2.
Fill in the missing gap: Opportunities _____________ Threats Weaknesses
Explanation
The missing gap in the given sequence is "Strengths". This sequence represents the SWOT analysis framework, which stands for Strengths, Weaknesses, Opportunities, and Threats. In this framework, strengths refer to the positive internal factors or attributes that give an advantage to an individual or organization. Therefore, "Strengths" is the correct answer to complete the sequence.Rate this question:
- 3.
Fill in the missing gap: Opportunities Strengths Threats __________
Explanation
The missing word in the given list is "Weaknesses". This list represents the SWOT analysis framework, which is commonly used in business and strategic planning. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses refer to internal factors within an organization, while Opportunities and Threats refer to external factors. Weaknesses are internal factors that may hinder the organization's performance or competitive advantage.Rate this question:
- 4.
In a SWOT analysis, the 'W' stands for Weaknesses which is an internal factor.
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True
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False
Correct Answer
A. TrueExplanation
The 'W' in SWOT analysis stands for weaknesses, which are internal factors. This means that weaknesses are aspects within the organization that may hinder its success or competitive advantage. Identifying and addressing these weaknesses is crucial for strategic planning and decision-making. Therefore, the statement is true as it correctly defines the 'W' in SWOT analysis.Rate this question:
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- 5.
In a SWOT analysis, the 'T' stands for Threats which is an external factor.
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True
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False
Correct Answer
A. TrueExplanation
The 'T' in SWOT analysis stands for Threats, which are external factors that can negatively impact an organization's performance. This includes factors such as competition, economic downturns, changes in regulations, and technological advancements. By identifying and analyzing threats, organizations can develop strategies to mitigate their impact and maintain a competitive edge in the market. Therefore, the statement that the 'T' in SWOT analysis stands for Threats, which is an external factor, is true.Rate this question:
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- 6.
Fill in the missing gap: _____________ Strengths Threats Weaknesses
Correct Answer
OpportunitiesExplanation
The missing gap in the given list is "Opportunities". The list appears to be a SWOT analysis, which is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or organization. In this case, the list is incomplete without including opportunities, which are external factors that can potentially benefit the organization.Rate this question:
- 7.
______________: a written document that describes a business, its objectives and its strategies, the market it is in and its financial forecasts
Correct Answer
Business planExplanation
A business plan is a written document that outlines the goals, strategies, and financial projections of a business. It provides a comprehensive overview of the company, including its objectives, target market, and competitive analysis. The business plan serves as a roadmap for the organization, guiding its operations and decision-making processes. It is a crucial tool for entrepreneurs and business owners to communicate their vision and attract investors or secure financing.Rate this question:
- 8.
A PEST analysis would normally identify __________ constraints
Correct Answer
externalExplanation
A PEST analysis is a tool used to analyze the external factors that may impact a business or industry. It stands for Political, Economic, Social, and Technological factors. By conducting a PEST analysis, a company can identify the external constraints or influences that may affect its operations, such as government regulations, economic conditions, societal trends, and technological advancements. This analysis helps businesses understand the external environment and adapt their strategies accordingly.Rate this question:
- 9.
In a SWOT analysis, the 'O' stands for Opportunities which is an external factor.
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True
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False
Correct Answer
A. TrueExplanation
The 'O' in SWOT analysis stands for Opportunities, which refers to external factors that can potentially benefit a business or organization. These opportunities can include market trends, technological advancements, changes in consumer behavior, or new business partnerships. Identifying and capitalizing on these external factors can help a company gain a competitive advantage and achieve its goals.Rate this question:
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- 10.
____________ decision-making: Involves making decisions based on instinct or 'gut feeling' (perhaps based on the manager's experience) for a situation and the options available
Correct Answer
IntuitiveExplanation
Intuitive decision-making refers to the process of making decisions based on instinct or gut feeling, rather than relying solely on logical reasoning or analysis. This approach is often used when a manager has extensive experience in a particular situation and can rely on their intuition to guide them in selecting the best course of action. It involves quickly assessing the options available and making a decision based on a subconscious understanding of the situation. Intuitive decision-making can be valuable in situations where there is limited time or information available, allowing for quick and effective decision-making.Rate this question:
- 11.
In a SWOT analysis, the 'S' stands for Strengths which is an internal factor.
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True
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False
Correct Answer
A. TrueExplanation
In a SWOT analysis, the 'S' stands for Strengths, which refers to the internal factors of a business or organization that give it a competitive advantage. This could include things like a strong brand reputation, skilled employees, or unique resources. By identifying and leveraging these strengths, a company can position itself for success in the market. Therefore, the statement is true.Rate this question:
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- 12.
In a SWOT analysis, the 'T' stands for Threats which is an internal factor.
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True
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False
Correct Answer
A. FalseExplanation
The explanation for the given correct answer is that in a SWOT analysis, the 'T' actually stands for "Threats" which is an external factor, not an internal one. This means that threats are factors that are outside of the control of the organization but can potentially harm its performance or success.Rate this question:
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- 13.
In a SWOT analysis, the 'S' stands for Strengths which is an external factor.
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True
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False
Correct Answer
A. FalseExplanation
In a SWOT analysis, the 'S' actually stands for Strengths, which is an internal factor. This means that it refers to the positive attributes or characteristics of a company or organization. Strengths are typically within the control of the company and can be used to its advantage in achieving its goals and objectives.Rate this question:
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- 14.
In a SWOT analysis, the 'O' stands for Opportunities which is an internal factor.
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True
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False
Correct Answer
A. FalseExplanation
The correct answer is False. In a SWOT analysis, the 'O' stands for Opportunities, which is actually an external factor. Opportunities refer to the external factors or conditions that can have a positive impact on an organization's performance or growth. These factors may include market trends, technological advancements, changes in consumer behavior, or new business opportunities.Rate this question:
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- 15.
_________ decision-making: Involves basing decisions on a formal framework and a data analysis of both the problems and the options available
Correct Answer
Scientific - 16.
____________: Limiting factors in decision-making that can be controlled by the organisation
Correct Answer
Internal constraintsExplanation
Internal constraints refer to the limiting factors in decision-making that are within the control of the organization. These constraints can include factors such as budget limitations, resource availability, organizational policies and procedures, technological limitations, and human resource constraints. By recognizing and understanding these internal constraints, organizations can effectively manage and make decisions that align with their resources and capabilities.Rate this question:
- 17.
Decision making that is based on a person's own experiences and feelings is known as
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Intuitive decision-making
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Scientific decision-making
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Strategic decision-making
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Tactical decision-making
Correct Answer
A. Intuitive decision-makingExplanation
Intuitive decision-making refers to the process of making decisions based on one's own experiences and feelings. It involves relying on instincts and gut feelings rather than relying on logical reasoning or scientific evidence. This type of decision-making is often used in situations where there is limited time or information available, and it can be influenced by past experiences and personal biases. Intuitive decision-making can be effective in certain situations, but it also carries the risk of biases and errors.Rate this question:
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- 18.
_____________: Limiting factors in decision-making that are beyond the organisation's control.
Correct Answer
External constraintsExplanation
External constraints refer to limiting factors in decision-making that are beyond the organization's control. These constraints can include economic factors, government regulations, market conditions, technological advancements, and social or cultural factors. They are external to the organization and cannot be influenced or changed by the organization itself. These constraints often shape the context in which the organization operates and can have a significant impact on its decision-making processes and outcomes.Rate this question:
- 19.
In a SWOT analysis, the 'W' stands for Weaknesses which is an external factor.
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True
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False
Correct Answer
A. FalseExplanation
In a SWOT analysis, the 'W' actually stands for Weaknesses, which is an internal factor. This means that weaknesses are internal aspects of a company or organization that can hinder its progress or success. These weaknesses can include factors such as lack of resources, outdated technology, or poor management. It is important to identify and address weaknesses in order to improve and grow the organization.Rate this question:
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- 20.
Which of the following documents is most likley to be placed at the fron of a business plan?
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Executive summary
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Research proposal
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Appendices
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Bibliography
Correct Answer
A. Executive summaryExplanation
The executive summary is most likely to be placed at the front of a business plan because it provides a concise overview of the entire plan. It includes key information such as the business concept, market analysis, financial projections, and goals. The executive summary is usually the first section that readers will see, and it is designed to grab their attention and provide a clear understanding of the business plan's main points. It serves as a summary of the entire plan and helps readers quickly determine if they want to continue reading the full document.Rate this question:
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- 21.
__________ refers to any medium- to long-term plan of how a business intends to meet its goals
Correct Answer
Strategy
Strategic planExplanation
A strategy refers to a plan that outlines the actions and decisions a business will undertake to achieve its long-term goals. It involves analyzing the current situation, setting objectives, and determining the best course of action to achieve those objectives. A strategic plan, on the other hand, is a detailed document that outlines the specific steps and initiatives to be taken to implement the strategy. Both terms are closely related and encompass the overall approach and direction a business takes to achieve its goals.Rate this question:
- 22.
Critical decisions and long-term decsions that set the overall direction for a business are known as
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Operational decisions
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Tactical decisions
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Strategic decisions
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Premeditated decisions
Correct Answer
A. Strategic decisionsExplanation
Strategic decisions refer to critical decisions and long-term decisions that set the overall direction for a business. These decisions are made by top-level management and are focused on achieving the organization's objectives and goals. They involve analyzing the external environment, identifying opportunities and threats, and formulating plans to gain a competitive advantage. Strategic decisions are crucial as they impact the organization's future and require careful consideration of various factors such as market trends, competition, resources, and capabilities. They guide the allocation of resources and determine the path the business will take to achieve success.Rate this question:
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- 23.
Which of the following would not be considered as a weakness in a SWOT analysis?
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Low cash flow
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High interest rates
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Limited product range
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No new products in the product pipeline
Correct Answer
A. High interest ratesExplanation
High interest rates would not be considered as a weakness in a SWOT analysis because it is an external factor that the company has no control over. Weaknesses in a SWOT analysis typically refer to internal factors that the company can address and improve upon. High interest rates may be a challenge for the company, but it is not a weakness that can be attributed to the company's internal operations or strategies.Rate this question:
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- 24.
Which of the following would not be considered as a strength in a SWOT analysis?
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A high staff retention rate
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A high staff turnover rate
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A healthy product portfolio
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A wide and loyal customer base
Correct Answer
A. A high staff turnover rateExplanation
A high staff turnover rate would not be considered as a strength in a SWOT analysis because it indicates a high rate of employees leaving the organization. This can lead to increased costs in recruiting, training, and onboarding new employees, as well as potential disruptions in workflow and productivity. A high staff turnover rate can also be a sign of underlying issues within the organization, such as poor management or a negative work culture. Therefore, it is not a desirable characteristic and would not be considered a strength.Rate this question:
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- 25.
Elements of a business plan are least likley to include
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Marketing research
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Marketing strategy
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Ratio analysis
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Sources of finance
Correct Answer
A. Ratio analysisExplanation
Ratio analysis is least likely to be included in a business plan because it is a financial analysis tool used to evaluate a company's financial performance. While it is important for businesses to conduct ratio analysis to understand their financial health, it is not typically included in a business plan. A business plan generally focuses on outlining the company's goals, target market, marketing strategy, sources of finance, and other key aspects of the business.Rate this question:
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- 26.
Under what circumstances would scientific decision-making be appropriate?
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When time is of the essence
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When dealing with ethical issues
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When finance for detailed market research is available
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When past experience is sought
Correct Answer
A. When finance for detailed market research is availableExplanation
Scientific decision-making would be appropriate when finance for detailed market research is available because conducting thorough market research requires financial resources. This type of research involves collecting data, analyzing trends, and evaluating the feasibility of different options. It allows decision-makers to make informed choices based on empirical evidence rather than relying solely on intuition or past experience. By investing in detailed market research, organizations can gain valuable insights into consumer preferences, market dynamics, and potential risks, leading to more effective decision-making and higher chances of success.Rate this question:
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- 27.
Which of the following would not be considered as an opportunity in a SWOT analysis?
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Entering new overseas markets
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A merger with a rival firm
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High level of staff motivation
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The development of new products
Correct Answer
A. High level of staff motivationExplanation
High level of staff motivation would not be considered as an opportunity in a SWOT analysis because it is an internal factor that is already present within the organization. SWOT analysis focuses on external factors that can impact the organization's performance and competitiveness. Opportunities are external factors that the organization can leverage to its advantage, such as entering new markets or developing new products. Staff motivation, although important, is an internal strength that does not directly relate to external opportunities.Rate this question:
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- 28.
A typical decision-making framework will help address all of the following questions, except
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How the business intends to achieve its objectives
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Where a business wants to be
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Why it is important to reach the firm's goals
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Identifying the current position of the business
Correct Answer
A. Why it is important to reach the firm's goalsExplanation
A typical decision-making framework helps address all the questions except "Why it is important to reach the firm's goals." This question pertains more to the motivation and justification behind setting goals, rather than the actual process of making decisions and addressing various aspects of the business. The decision-making framework focuses on determining objectives, identifying the current position of the business, and outlining how to achieve those objectives and where the business wants to be in the future.Rate this question:
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- 29.
Which advantage does not apply to decision trees?
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They set out the decision making problems in a clear and logical manner
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They are based on important intuitive and qualitative factors that affect decision making
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They provide a quick and visual interpretation of the likely outcomes of decisions that need to be made
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They force managers to assess the risks made in pursuing certain decisions
Correct Answer
A. They are based on important intuitive and qualitative factors that affect decision makingExplanation
Decision trees do not necessarily rely on important intuitive and qualitative factors that affect decision making. Instead, decision trees are a visual representation of decision-making problems that provide a clear and logical manner of setting out the problem. They also offer a quick and visual interpretation of the likely outcomes of decisions, helping managers assess the risks involved in pursuing certain decisions. However, the use of important intuitive and qualitative factors is not a specific advantage of decision trees.Rate this question:
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- 30.
External constraints on business planning and decision making include
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The availability of finance
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Exogenous shocks
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Organisational culture
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Human resources
Correct Answer
A. Exogenous shocksExplanation
Exogenous shocks refer to unexpected events or circumstances that are beyond the control of a business, such as natural disasters, economic downturns, or political instability. These shocks can have a significant impact on a business's planning and decision-making processes. For example, a sudden economic recession may force a company to revise its financial plans and make difficult decisions regarding cost-cutting measures or layoffs. Similarly, a natural disaster may disrupt supply chains and require businesses to quickly adapt their operations. Therefore, external constraints like exogenous shocks can greatly influence business planning and decision making.Rate this question:
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- 31.
Financial backers would be interested in the relative strengths and weaknesses of a business proposal. This can be done through examining a firm's
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Research proposal
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Executive summary
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Business plan
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Annual report
Correct Answer
A. Business planExplanation
Financial backers would be interested in the relative strengths and weaknesses of a business proposal. A business plan provides a comprehensive overview of the proposed business, including its goals, strategies, financial projections, and market analysis. It outlines the potential risks and challenges the business may face, as well as the opportunities and competitive advantages it possesses. By examining the business plan, financial backers can assess the viability and profitability of the proposed venture, helping them make informed decisions about whether to invest or provide funding support.Rate this question:
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- 32.
Which statement below does not apply to the Ishikawa fishbone model of decision-making?
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It looks at the causes and effects of a particular problem or issue
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It is a visual tool used to identify the root cause of a problem or issue
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It places a monetary value on key decisions
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It can be a useful brainstorming tool
Correct Answer
A. It places a monetary value on key decisionsExplanation
The Ishikawa fishbone model of decision-making is a visual tool used to identify the root cause of a problem or issue. It looks at the causes and effects of a particular problem or issue. It can be a useful brainstorming tool. However, it does not place a monetary value on key decisions.Rate this question:
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- 33.
Which of the following would not be considered as a strength in a SWOT analysis?
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Fast growing population in key market segment
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Strong R&D programme
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Comprehensive market research data
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Economies of scale
Correct Answer
A. Fast growing population in key market segmentExplanation
A fast-growing population in a key market segment would not be considered a strength in a SWOT analysis because it is an external factor that the company has no control over. Strengths are internal factors that the company possesses and can leverage to gain a competitive advantage. In this case, the company cannot take credit for the population growth, and it may not necessarily translate into increased sales or profitability. Therefore, it is not considered a strength in the SWOT analysis.Rate this question:
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- 34.
Which of the following would not be considered as an opportunity in a SWOT analysis?
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Depreciating exchange rate for exporting company
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Free trade deal signed with India
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Rival in a key market with very low market capitalisation valuation
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Excellent customer service ratings
Correct Answer
A. Excellent customer service ratingsExplanation
Excellent customer service ratings would not be considered as an opportunity in a SWOT analysis because it falls under the category of strengths. Opportunities are external factors that can be leveraged to create a competitive advantage or improve the company's position in the market. Excellent customer service ratings are an internal strength of the company and would be analyzed separately under the strengths section of the SWOT analysis.Rate this question:
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- 35.
Which of the following would not be considered as a threat in a SWOT analysis?
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Lower entry barriers in the industry
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Industrial action from the workforce
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A takeover bid from another company
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Lower interest rates in the economy
Correct Answer
A. Lower interest rates in the economyExplanation
Lower interest rates in the economy would not be considered as a threat in a SWOT analysis because it is a positive factor that can benefit businesses. Lower interest rates can lead to increased borrowing and investment, which can stimulate economic growth and improve business conditions. This can result in lower borrowing costs, increased consumer spending, and higher profitability for companies. Therefore, lower interest rates can be seen as an opportunity rather than a threat in a SWOT analysis.Rate this question:
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- 36.
A business plan is un likley to include which of the following?
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Statement of aims and objectives
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Competitor analysis
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Pricing policy
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Cash flow statement
Correct Answer
A. Cash flow statementExplanation
A business plan typically includes various sections that outline the company's aims and objectives, analyze competitors, and establish a pricing policy. However, a cash flow statement is not typically included in a business plan. A cash flow statement is a financial statement that shows the inflow and outflow of cash within a business over a specific period. While it is an important financial document for managing the company's finances, it is usually included in the financial section of a business plan rather than the main body.Rate this question:
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- 37.
Drawbacks of using decsion trees do not include which statement below?
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The probabilities are only estimates and the outcomes are therefore uncertain
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They ignore intuitive decision making
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They ignore social factors and legal constraints in the decision making process
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They ignore the financial costs of investment decisions
Correct Answer
A. They ignore the financial costs of investment decisionsExplanation
Decision trees do not ignore the financial costs of investment decisions. In fact, one of the advantages of using decision trees is that they can incorporate financial considerations into the decision-making process. Decision trees can take into account the costs associated with different options and help in evaluating the financial implications of each decision branch. Therefore, the statement "They ignore the financial costs of investment decisions" is incorrect.Rate this question:
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Feb 14, 2023Quiz Edited by
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Jul 12, 2012Quiz Created by
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