Question

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat?A) The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B) A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. C) Recent consumer studies have indicated that Chinese consumers prefer American cars. D) Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E) The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

Answer 1

Answer:

"B".

Explanation:

Threat in business analysis is an action that can cause potential danger to an organization.

One key thing of identifying a threat according to SWOT analysis is that it must be a negative external action.

Aspects of business prone to threats are economic and market trends ,financial , political support ,government regulation and target customers

So any external action that might negatively affect any of the above aspects is considered a threat and should be addressed promptly.