Question

Internal and external environment are parts of:

• A. Organization
• B. Control
• C. Business environment
• D. Staffing

Hint:

Business environment comprises both the internal and the external factors affecting a firm.

Answer 1

The Correct Option is C

Step 1: Understanding the Question:
The question tests a core concept from the Nature/Principles of Management syllabus.

Step 2: Identifying the correct option:
Business environment is defined as the sum total of all internal factors (within the firm's control, e.g. value system, resources) and external factors (outside the firm, e.g. economic, social, political, legal, technological) that influence business decisions.

Step 3: Why (A) Organization is incorrect:
Organisation is a management function (grouping activities/resources), not defined by internal/external environment.

Step 3: Why (B) Control is incorrect:
Control is a management function concerned with measuring performance, unrelated to this classification.

Step 3: Why (D) Staffing is incorrect:
Staffing is about acquiring and developing human resources, not about internal/external environment.

Final Answer:
Business environment