Q.State whether True or False, with reason: "The internal environment of a business refers to factors that are largely outside the firm's own control."

The internal environment consists specifically of factors WITHIN the organisation's own control, unlike the external environment.

Recall the internal-vs-external distinction covered above before answering.

This statement is False. The internal environment consists of factors within the organisation's OWN control — its resources, management philosophy, workforce, and organisational culture. It is the EXTERNAL environment (economic, political-legal, socio-cultural, technological) that consists of forces largely outside the firm's control, which this chapter focuses on.