Part 1:
1. Describe what a SWOT is all about and how and why it is done.
2. Choose an actual company on which to complete a brief SWOT analysis.
3. Describe brief examples of a strength, a weakness, an opportunity, and a threat for that actual company using the definitions below.
- A strength is something a company is better at than its competitors
- A weakness is something a company is not as good at as its competitors
- An opportunity is something occurring external to the company that could affect it and all its competitors favorably
- A threat is something occurring external to the company that could affect it and all its competitors adversely
Part 2:
A. If you had only 1 of the 4 main financial statements available to study to assess the financial health of the company, which would you prefer to have
- income statement
- balance sheet
- cash flow statement
- statement of changes in owner's equity
State which one you would prefer and why you choose that one specifically.
B. Out of the 20 or more popular ratios:
- List 4 key financial ratios that could be calculated from these 4 statements
- For each ratio listed, describe what it tells about the financial health of a company