Photo AI
Which of the following includes both an opportunity and a threat from a SWOT analysis? (A) Low interest rates and high gearing (B) Loyal employees and outdated technology (C) Excellent management and strong competition (D) Strong economic growth and increased tax rates - HSC - SSCE Business Studies - Question 7 - 2013 - Paper 1
Question 7
Which of the following includes both an opportunity and a threat from a SWOT analysis? (A) Low interest rates and high gearing (B) Loyal employees and outdated tec... show full transcript
Worked Solution & Example Answer:Which of the following includes both an opportunity and a threat from a SWOT analysis? (A) Low interest rates and high gearing (B) Loyal employees and outdated technology (C) Excellent management and strong competition (D) Strong economic growth and increased tax rates - HSC - SSCE Business Studies - Question 7 - 2013 - Paper 1
Step 1
Identify opportunity and threat components
Answer
In a SWOT analysis, opportunities are external factors that can be beneficial for the organization, while threats are external challenges that could harm it. We need to analyze each option's potential for containing both an opportunity and a threat.
Step 2
Evaluate options
Answer
-
(A) Low interest rates and high gearing: Low interest rates are an opportunity for borrowing more easily. High gearing represents financial risk, which is a threat. Thus, this option has both an opportunity and a threat.
-
(B) Loyal employees and outdated technology: Loyal employees are an asset (strength), and outdated technology can be a threat. This option lacks an opportunity.
-
(C) Excellent management and strong competition: Excellent management is a strength, and strong competition is a threat. This option lacks an opportunity.
-
(D) Strong economic growth and increased tax rates: Strong economic growth is an opportunity, while increased tax rates are a threat. Therefore, this option also embodies both elements.
Step 3