Which of the following is an example of a problem stemming from inside the organization?

• A. Entry of new competitors into the industry
• B. Low employee morale affecting productivity
• C. Changes in government regulations
• D. Fluctuations in market demand

Answer: (B)

Verified step by step guidance

1. Understand the difference between internal and external problems in an organization. Internal problems originate within the company and affect its operations directly, while external problems come from outside the company and impact it indirectly.
2. Analyze each option to determine its source: 'Entry of new competitors into the industry' is an external factor because it involves other firms outside the organization.
3. Consider 'Changes in government regulations' as an external problem since it involves laws and rules imposed by external authorities.
4. Look at 'Fluctuations in market demand' which is also external because it depends on consumer behavior and market conditions outside the company.
5. Identify 'Low employee morale affecting productivity' as an internal problem because it arises from within the organization, directly impacting its workforce and efficiency.