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CSEET · Economic and Business Environment · Business Environment

Which of the following is a recognised limitation of SWOT analysis?

A recognised limitation is that SWOT is subjective and only a snapshot, listing factors without ranking or weighting their importance. It does cover external factors, is not legally restricted, and needs no audited statements, so the other statements are incorrect.

  1. AIt cannot identify any external factors
  2. BIt can be too subjective and gives a snapshot without ranking factors by importanceCorrect
  3. CIt is legally prohibited for listed companies
  4. DIt requires audited financial statements before use

Explanation

SWOT lists factors qualitatively, so results depend on the judgement of those preparing it, it reflects one point in time, and it does not by itself weight or rank factors. It does cover external factors, has no legal bar and needs no audited statements.

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