CSEET · Economic and Business Environment · Business Environment
Which of the following is an internal environmental factor for a business firm?
The firm's mission, vision and objectives form an internal environmental factor because they originate inside the organisation and management can control them. Repo rate changes, GST rates and consumer incomes are external forces that the firm cannot control and must adapt to.
- AChanges in the repo rate announced by the RBI
- BThe firm's mission, vision and objectivesCorrect
- CIntroduction of a new GST rate by the government
- DA rise in consumer disposable incomes in the country
Explanation
Internal factors lie within the firm and can generally be controlled by it, such as its mission, vision, objectives, policies and resources. The repo rate, GST rate and consumer incomes are outside the firm's control and belong to the external environment.
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