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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 (A) Low interest rates and high gearing (B) Loyal employees and outdated technology (C) Excellent management and strong competition (D) Strong economic growth and increased tax rates - HSC - SSCE Business Studies - Question 7 - 2013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 (A) Low interest rates and high gearing (B) Loyal employees and outdated tec...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 (A) Low interest rates and high gearing (B) Loyal employees and outdated technology (C) Excellent management and strong competition (D) Strong economic growth and increased tax rates - HSC - SSCE Business Studies - Question 7 - 2013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
Strong economic growth and increased tax rates
Answer
In SWOT analysis, an opportunity is a favorable condition that can be leveraged for growth, while a threat is a potential risk that could adversely affect the business. Option (D) presents both an opportunity and a threat:
- Opportunity: Strong economic growth can provide businesses with greater demand for products and services, leading to increased revenues and profit potential.
- Threat: Conversely, increased tax rates can diminish profits and create financial pressure on the business.
Thus, this option encapsulates the duality of both an opportunity and a threat.