Financial Counseling Certification Program (FiCEP) Practice Exam

What decision-making tool is best to consider all forces for and against a plan?

1. SWOT analysis

2. Force-field analysis

3. Cost-benefit analysis

4. Trend analysis

The correct answer is: Force-field analysis

Force-field analysis is a decision-making tool that is particularly effective for evaluating all the forces for and against a plan. This method allows practitioners to visually map out the driving and restraining forces affecting a decision. By identifying the factors that promote or inhibit change, individuals can better understand the dynamics at play and make more informed choices. The strength of force-field analysis lies in its ability to create a balanced view of a situation. By listing driving forces (such as potential benefits or opportunities) on one side and restraining forces (like potential obstacles or risks) on the other, decision-makers can assess the overall landscape of a decision. This holistic approach encourages critical thinking about the implications of a plan and helps in strategizing to enhance the driving forces while mitigating the resistive ones. In contrast, other analytical tools focus on different aspects. For instance, SWOT analysis identifies internal strengths and weaknesses as well as external opportunities and threats, but it does not explicitly weigh the forces for and against a plan in the same comprehensive manner. Cost-benefit analysis is primarily concerned with quantifying the economic consequences of decisions, which may overlook qualitative factors. Lastly, trend analysis focuses on analyzing data over time to infer potential future patterns, often neglecting the immediate pros and cons of specific