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Understanding Internal Factors in Organizations

Total questions: 23

Worksheet time: 12mins

Name
Class
Date
1.

What do internal factors in a business refer to?

a)

Things a business can control that impact how it operates

b)

Laws set by the government

c)

Customer preferences

d)

Economic conditions outside the business

2.

Why does a business need adequate funds?

a)

To survive and grow successfully

b)

To reduce competition

c)

To increase taxes

d)

To avoid hiring employees

3.

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

a)

To develop a new product

b)

To upgrade new software

c)

To reduce the number of employees

d)

To buy new machinery and equipment

4.

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

a)

Hiring new staff

b)

Reducing product quality

c)

Ignoring market trends

d)

Decreasing advertising

5.

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

a)

The people who work in a business organisation

b)

The physical assets of a business

c)

The financial resources of a business

d)

The products sold by a business

6.

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

a)

Only managers

b)

Only employees

c)

Both managers and employees

d)

Only customers

7.

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

a)

By creating policies to motivate employees

b)

By ignoring employee performance

c)

By avoiding decision making

d)

By refusing to set goals

8.

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

a)

To assess staff and ensure they are working effectively

b)

To hire new employees only

c)

To increase the company’s profits directly

d)

To set the company’s budget

9.

How can good decision making by managers benefit a business?

a)

It can increase productivity, profits, and business growth

b)

It can reduce the number of employees

c)

It can eliminate the need for policies

d)

It can decrease employee motivation

10.

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

a)

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

b)

Hiring and firing employees

c)

Creating marketing strategies

d)

Designing new products

11.

A manager wants to motivate employees and set realistic goals. Which action should they take?

a)

Create policies

b)

Fire employees

c)

Ignore staff performance

d)

Reduce the budget

12.

Suppose a business is struggling with low productivity. Which managerial action is most likely to help improve this situation?

a)

Making good decisions

b)

Reducing employee salaries

c)

Avoiding staff appraisals

d)

Ignoring budget constraints

13.

A manager is responsible for recruiting new staff and letting others go, What is a better way to word this in a N5 Answer?

a)

Hiring & firing employees

b)

Setting budgets

c)

Conducting appraisals

d)

Creating policies

14.

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

a)

Productivity

b)

Market share

c)

Advertising budget

d)

Office location

15.

What does absenteeism among employees most likely affect in a business?

a)

The number of employees present at work

b)

The color of the office walls

c)

The type of products sold

d)

The company logo

16.

How can employee training influence a business?

a)

By improving employees' skills and knowledge

b)

By increasing the price of products

c)

By changing the company’s name

d)

By reducing the number of customers

17.

Which of the following best describes "industrial action" in the context of employees influencing a business?

a)

Employees taking steps such as strikes or protests

b)

Employees designing new products

c)

Employees attending social events

d)

Employees working overtime

18.

Why is the ability to satisfy customers important for a business?

a)

It helps retain customers and improve business reputation

b)

It increases the number of holidays for employees

c)

It reduces the need for employee training

d)

It changes the business location

19.

If a business wants to improve its employees' ability to perform their job, which of the following should it focus on?

a)

Providing effective training programs

b)

Reducing the number of employees

c)

Changing the company logo

d)

Increasing product prices

20.

How can a business use new technology to benefit itself?

a)

To ensure efficiency and boost its profile

b)

To increase manual paperwork

c)

To avoid customer interaction

d)

To reduce product quality

21.

Why might a business use social media?

a)

To establish a close link to customers and spread the word about its products

b)

To avoid customer feedback

c)

To reduce its online presence

d)

To increase hardware costs

22.

What risk does a business face if it does not upgrade its hardware and software?

a)

Losing customers due to lack of features like contactless payment

b)

Increasing its customer base

c)

Reducing its expenses

d)

Improving its efficiency

23.

A business is considering whether to invest in new video conferencing technology. What strategic benefit could this provide?

a)

It could reduce travel costs and increase efficiency in meetings.

b)

It could increase the need for physical meeting rooms.

c)

It could make meetings longer and less productive.

d)

It could decrease the use of technology in the business.