The factor that distinguishes an internal environment of an organization from an external environment is that:
A) the internal environment consists of the general environment and the task environment.
B) the internal environment includes owners, the board of directors, employees, and culture.
C) the internal environment includes entities that directly affect a firm on a continuous basis.
D) the internal environment consists of the technological, economic, and sociocultural factors.

Question

Quizplus · Accepted Answer

The internal environment of an organization is made up of factors and entities that are within the organization itself, such as owners, the board of directors, employees, and company culture. These factors are not present in the external environment, which consists of entities outside the organization that may have an impact on it. While the general and task environments are important components of the external environment, they are not part of the internal environment. The technological, economic, and sociocultural factors are also components of the external environment, not the internal. Therefore, the most accurate option is B.

The Factor That Distinguishes an Internal Environment of an Organization