Question

Which one of the following is not an element of internal environment?

• A. Mission/ Objectives
• B. Human Resources
• C. Customers
• D. Shareholders' values

Answer 1

Answer: (C)

Customers

Environment of a business can be classified as internal and external. External environment consists of factors or forces that are influencing the business from outside. They include customers.

Internal elements include the factors that are internal to the business. The mission, objectives, policies, human resources and shareholders' value are examples of internal environment of a business.