Florida NASCLA Contractors Practice Exam 2025 – Complete Prep Guide

The answer is correct because SWOT analysis is a strategic planning tool that helps organizations identify and understand their internal and external environments. In this framework, the components are specifically strengths, weaknesses, opportunities, and threats.

Strengths refer to the internal attributes and resources that contribute to a company's ability to achieve its objectives. Weaknesses are internal factors that can inhibit an organization’s performance. Opportunities involve external conditions or trends that could be leveraged for advantages. Threats represent external challenges or obstacles that could harm the business.

Technological limitations, while they can affect a business, are not a standalone component of SWOT analysis. Instead, they would typically be classified as either a weakness (if they hinder performance) or a threat (if they present competitive challenges). Thus, they do not fit neatly into the established structure of a SWOT analysis, which focuses on the four specific areas mentioned.