Swot Analysis
What kind of internal factor could a highly skilled workforce represent in a SWOT analysis
A Strength.
What does financial analysis assess?
A business’s profitability, liquidity, and overall financial health.
What is a unique selling point (USP)
A feature that makes a product or service stand out from competitors.
What is a short-term source of finance a business might use?
Overdraft or trade credit.
What is the difference between current assets and non-current assets?
Current assets are expected to be converted to cash within a year, while non-current assets are long-term resources not intended for immediate sale
Which factors in a SWOT analysis are internal to the business
Strengths and Weaknesses.
What is one example of non-financial data a business might assess?
Customer satisfaction or employee turnover rates.
Why do businesses create a plan
To survive, avoid failure, meet objectives, or develop ideas.
hat type of finance involves raising money from the public via online platforms?
Crowd-funding.
Name one example of a current asset.
Inventory, accounts receivable, or cash.
A new competitor in the market is considered what type of factor in a SWOT analysis?
A Threat.
Name one method a business can use to improve its financial performance.
Reduce costs or increase revenue through marketing campaigns.
Name two ways business ideas can arise
Problem-solving, innovation, accidental discovery, employees, inventors, or entrepreneurs.
What is an advantage of using internal sources of finance like savings?
No interest or repayment is required.
What does the gross profit of a business represent?
The revenue minus the cost of goods sold (COGS), before deducting other expenses.
Why are opportunities and threats harder to control than strengths and weaknesses?
They are external and influenced by factors outside the business
What does a cash flow statement indicate?
Name two reasons why businesses fail
Flawed business plans, poor financial control, lack of market knowledge, lack of a USP, or concentration risk.
What is one disadvantage of using a loan as a source of finance?
Interest must be paid, increasing financial obligations.
What is the main purpose of a financial statement?
To provide information about a business’s financial performance and position for decision-making by stakeholders
Name an external opportunity that could result from government policy changes.
Example- Tax incentives for green energy or subsidies for certain industries.
rovide an example of a specific recommendation to improve a struggling business.
Launch a new product line, expand into untapped markets, or streamline operational processes.
What are the main components included in a business plan?
Identification of product/service, USP, market research, financial requirements, and resource needs.
How does a venture capitalist support a business financially?
By providing investment in exchange for equity or shares in the business.
How do current liabilities differ from long-term liabilities on a financial statement?
Current liabilities are obligations the business needs to pay within a year, such as accounts payable or short-term loans, while long-term liabilities are debts or obligations due after one year, such as mortgages or bonds.