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CMA Intermediate · Operations Management and Strategic Management · Productivity Management and Quality Management

Which of the following is an internal, controllable factor that influences a firm's productivity, as opposed to an external factor?

Work methods and plant layout are internal controllable factors because management decides them. Government tax policy, public infrastructure and exchange rates are external conditions that the firm cannot control, even though they affect productivity.

  1. AGovernment tax policy
  2. BAvailability of public infrastructure
  3. CWork methods and layout of the plantCorrect
  4. DExchange rate movements

Explanation

Work methods and plant layout are decided by management and are internal. Tax policy, infrastructure and exchange rates are external factors beyond the firm's control, so they cannot be the correct choice.

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