The ability to analyze the company's strengths and weaknesses is a fundamental concept that a nonfinancial manager should understand in order to:
A)better assess the current environment in which the firm operates.
B)better assess future financing requirements.
C)better understand the role of capital markets in raising long-term funds.
D)better measure and create value for the shareholder.

Question

Quizplus · Accepted Answer

Analyzing a company's strengths and weaknesses helps the nonfinancial manager to better assess the current environment in which the firm operates, which can lead to better decision-making and strategies for the future. Understanding the company's strengths and weaknesses can also help the manager identify areas for improvement and potential risks to the business. While analyzing strengths and weaknesses can indirectly impact financing requirements, capital markets, and shareholder value, these are not the primary reasons why a nonfinancial manager should understand this concept.

The Ability to Analyze the Company's Strengths and Weaknesses Is