During planning, SWOT analysis is important to determine how to turn threats into opportunities

Indicate whether the statement is true or false


True

Business

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As part of a strategic planning process, Midwest Power's senior executives determined positive findings from their SWOT analysis: (1) New regulations will provide tax credits for renewable ("green") power sources. (2) Their customers will pay higher prices for green power. (3) A competing power utility that owns renewable power sources is struggling and might be a target to be acquired by Midwest Power. (4) As compared to their competitors, Midwest Power's management team is one of the best in the industry. A strength of Midwest Power, per the SWOT analysis, is that

A. their customers will pay higher prices for green power. B. a competing power utility is struggling. C. the competing power utility might be a target to be acquired. D. their management team is one of the most skilled in the industry. E. new regulations will provide tax credits for renewable power sources.

Business

Adjusting entries are designed primarily to correct accounting errors.

Answer the following statement true (T) or false (F)

Business

Your firm is considering investing in one of two mutually exclusive projects. Project A requires an

initial outlay of $3,500 with expected future cash flows of $2,000 per year for the next three years. Project B requires an initial outlay of $2,500 with expected future cash flows of $1,500 per year for the next two years. The appropriate discount rate for your firm is 12% and it is not subject to capital rationing. Assuming both projects can be replaced with a similar investment at the end of their respective lives, compute the NPV of the two chain cycle for Project A and three chain cycle for Project B. A) $2,865 and $94 B) $3,528 and $136 C) $5,000 and $1,500 D) $2,232 and $85

Business

Which of the following might be considered the most drastic step in securing funding, often a last resort for a corporation?

A. Using sales revenue B. Equity capital funding C. Short-term borrowing from a bank D. Debt capital funding E. Sale of assets

Business