Understanding Internal Factors in Organizations

What do internal factors in a business refer to?

• Things a business can control that impact how it operates

• Laws set by the government

• Customer preferences

• Economic conditions outside the business

Why does a business need adequate funds?

• To survive and grow successfully

• To reduce competition

• To increase taxes

• To avoid hiring employees

Which of the following is NOT a reason a business may need finance?

• To develop a new product

• To upgrade new software

• To reduce the number of employees

• To buy new machinery and equipment

Which of the following actions would require a business to seek additional finance? (Select the best answer.)

• Hiring new staff

• Reducing product quality

• Ignoring market trends

• Decreasing advertising

What does the term "human resources" refer to in a business organisation?

• The people who work in a business organisation

• The physical assets of a business

• The financial resources of a business

• The products sold by a business

Which of the following groups are included under human resources in a business?

• Only managers

• Only employees

• Both managers and employees

• Only customers

Which of the following is a way managers can influence a business?

• By creating policies to motivate employees

• By ignoring employee performance

• By avoiding decision making

• By refusing to set goals

What is the main purpose of conducting appraisals in a business?

• To assess staff and ensure they are working effectively

• To hire new employees only

• To increase the company’s profits directly

• To set the company’s budget

How can good decision making by managers benefit a business?

• It can increase productivity, profits, and business growth

• It can reduce the number of employees

• It can eliminate the need for policies

• It can decrease employee motivation

Which of the following best describes the role of managers in setting budgets?

• Deciding how much money a business can spend within a specific period

• Hiring and firing employees

• Creating marketing strategies

• Designing new products