Question

Which of the following statements concerning SWOT analysis is false?

A. Strengths are the factors that give the firm a comparative advantage in the marketplace.
B. Weaknesses result when the company has potentially exploitable advantages over other firms.
C. Opportunities are environmental factors that favor the firm.
D. Threats are environmental factors that can hinder the firm in achieving its goals.
E. None of the above (that is, all statements are true).

Answer 1

Correct option is (B)

Step-by-step explanation:

SWOT is the abbreviation for strength, weakness, opportunity and threats that helps in formulating business strategies. Strengths are positive factors such as competency of employees and business assets.

Weaknesses are factors that are negative which can be controlled or improved by the organization. Some examples of weakness are gaps in communication between teams and improvements required in certain processes.

Opportunities refer to factors outside the organization that contributes to the success of an enterprise and threats are pose a problem to the enterprise which are beyond control

Weakness does not result when firm has potential advantage over other firms.