Entrepreneurship and Small Business (ESB) Certification Practice Exam

What internal factors should be considered in a SWOT analysis?

1. Opportunities and Threats

2. Strengths and Weaknesses

3. Market Trends

4. Competitive Landscape

The correct answer is: Strengths and Weaknesses

In a SWOT analysis, internal factors specifically refer to aspects within the organization that can influence its ability to achieve its objectives. Strengths are the attributes that give the organization an advantage over competitors, whereas weaknesses are areas where the organization may be at a disadvantage. Identifying strengths allows an organization to leverage its assets effectively, while recognizing weaknesses helps in understanding where improvements are needed. This internal perspective is crucial because it provides insight into the company’s capacity to act on the opportunities available in the market and to defend against external threats. In contrast, the other options focus on external factors. Opportunities and threats pertain to external conditions, market trends and competitive landscape also represent outside influences, which while important in a comprehensive analysis, do not fall under the internal factors considered in the SWOT framework.