An external analysis helps identify _________.
A)a company's opportunities and threats
B)the financial ratios the company should use
C)a company's strengths and weaknesses
D)the short-term goals for a company

Question

Quizplus · Accepted Answer

An external analysis focuses on the factors outside of the company that can impact its success, such as economic conditions, industry trends, and competition. By conducting an external analysis, a company can identify opportunities that it can capitalize on and potential threats that it must address to remain competitive. This analysis does not directly identify the financial ratios or goals for the company, nor does it identify its strengths and weaknesses, which is the focus of an internal analysis.

An External Analysis Helps Identify _________