Entrepreneurship and Small Business (ESB) Certification Practice Exam

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Prepare for the Entrepreneurship and Small Business Certification Exam with engaging quizzes. Use flashcards and multiple choice questions, each with detailed hints and explanations. Enhance your entrepreneurial skills and ace your exam!

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What type of analysis evaluates a company's strengths, weaknesses, opportunities, and threats?

SWOT analysis
PEST analysis
Competitor analysis
Market analysis

The correct answer is: SWOT analysis

The analysis that evaluates a company's strengths, weaknesses, opportunities, and threats is known as SWOT analysis. This framework provides a comprehensive look at both internal factors (strengths and weaknesses) and external factors (opportunities and threats) that may affect an organization's performance. The internal factors highlight what the company does well and where it may need improvement, allowing for strategic planning to leverage strengths and mitigate weaknesses. Meanwhile, external factors help identify potential challenges in the environment, such as market trends or competitor actions, as well as opportunities for growth or expansion. This balanced approach allows businesses to formulate effective strategies that enhance their competitive advantage and position in the marketplace.