Accounting Fundamentals Certification (AFC) Practice Test 2025 – The Comprehensive All-in-One Guide to Exam Success!

The correct answer is SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats. This analytical framework is widely used in strategic planning to assess an organization's internal and external factors. The primary focus of a SWOT analysis is to provide a structured way of evaluating an organization's current position in the market.

Strengths and weaknesses refer to internal factors that are inherent to the organization. Strengths could include aspects such as strong brand reputation, skilled workforce, or proprietary technologies. Weaknesses may involve limitations such as lack of resources, skill gaps, or poor location.

Opportunities and threats are external factors that can impact the organization. Opportunities may arise from market trends, technological advancements, or changes in consumer preferences, which could be leveraged for growth and expansion. Threats include external challenges such as increased competition, regulatory changes, or economic downturns that may hinder performance.

The other options, while they serve important analytical purposes, do not specifically focus on identifying strengths, opportunities, and weaknesses in the same comprehensive manner as SWOT analysis. GAP analysis is usually concerned with the differences between the current state and desired state of a process or performance. Financial analysis focuses primarily on examining financial data to assess profitability and viability. Behavioral analysis looks at the actions and