SWOT
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, and Threats of a business
What does PEST stand for?
Political, Economic, Social, and Technological
As a sole proprietor, do you keep all the money your business makes?
Yes, but you also keep all of the debt.
What does CSR stand for?
Corporate Social Responsibility
What are the main leadership styles in business?
The main styles are: autocratic, democratic, transformational, transactional, and laissez-faire
What's the difference between internal and external factors in SWOT?
Strengths and Weaknesses are internal. Opportunities and Threats are external.
How is PEST different from SWOT?
PEST only looks at external factors, while SWOT covers both internal and external. PEST is often used as an input to the Opportunities and Threats section of a SWOT analysis.
In a Partenership, If one partner makes a huge financial mistake, does the other partner suffer too?
Unfortunately, yes. In a general partnership, both partners are fully on the hook
What is CSR in simple terms?
It is when a company takes responsibility for its impact on society and the environment.
When is autocratic leadership useful?
It works best in crisis or high-pressure situations where fast, clear decisions are needed.
Give a real-world example of a SWOT factor.
Ex. Apple's brand loyalty (Strength), a new competition launching a similar product (Threat)
Give a real-world example of each PEST factor.
What's the real difference between a sole proprietorship and an LLC?
A sole proprietorship means you are the business meaning, if it gets sued, you get sued personally. An LLC puts a wall between you and the business, so your personal savings and assets stay protected if things go wrong.
Give one example of a CSR activity a company might do.
Ex. Donating to local charities, reducing pollution, or offering fair wages to employees.
What is the difference between transformational and transactional leadership?
Transformational leaders inspire and motivate people toward a bigger vision. Transactional leaders focus on targets and rewards.
What is SWOT used for?
To help businesses make better strategic decisions by understanding what they're good at, where they struggle, and what's happening around them.
Why is PEST useful for businesses?
It helps businesses spot external trends early so they can adapt their strategy before those trends become problems or missed opportunities.
What's the point of a nonprofit if it can still make money?
A nonprofit can bring in more than it spends and pay its staff fair salaries, but any leftover money has to go back into the mission, not into anyone's pocket.
Why do companies practice CSR?
To build a good reputation, gain customer trust, and make a positive impact on their community and environment.
What is the biggest risk of laissez-faire leadership?
Without enough guidance, teams can lose direction, miss deadlines, and lack accountability.
What is a key weakness of SWOT analysis itself?
It's subjective and doesn't prioritize factors. For example, a small issue looks the same on paper as a major one.
What is a key limitation of PEST analysis?
It can quickly become outdated, as the external environment changes fast, so a PEST analysis needs to be revisited regularly to stay useful.
How is an LLC different from a partnership?
In a partnership, you and your partner are the business. In an LLC, the business is its own legal entity, meaning your personal assets are generally protected if things go south.
True or False: CSR only focuses on making money for the company. Why or Why Not.
False, CSR focuses on benefiting society, the environment, and the community, not just profits.
Which leadership style is best for creative teams?
Democratic or laissez-faire leadership tends to work best for creative teams.