Question

Which of the following statement(s) about the Organizational Environment is/are correct?

i. Internal factors include company objectives, management styles, physical resources, and technology used by the organization.
ii. External factors include suppliers, competitors, customers, intermediaries, and broader trends like social, economic, technological, political, and legal developments.
iii. The business environment is static and does not require continuous analysis or adaptation by the organization.
iv. The internal environment consists of elements that management can directly control, such as mission, value system, human resources, and company image.

• A. i, ii and iii
• B. i, ii and iv
• C. ii, iii and iv
• D. i, iii and iv

Answer 1

Answer:

B. i, ii and iv

• Statement i is correct as these are key internal factors within an organization's control.

• Statement ii is correct; these are typical external factors that affect a business but are beyond direct control.

• Statement iii is incorrect because the business environment is dynamic and constantly changing, requiring continuous analysis and adaptation.

• Statement iv is correct; the internal environment consists of factors management can influence, including mission, values, human resources, and company image.