Which term describes internal limitations that hinder a business's performance?

Which term describes internal limitations that hinder a business's performance?

• A. Opportunities
• B. Weaknesses
• C. Policies
• D. Threats

Answer: (B)

Internal limitations that slow a business's performance are weaknesses. These are the areas inside the organization where it lacks capability, resources, or efficiency, such as skill gaps, outdated technology, inefficient processes, or limited capital. In SWOT analysis, weaknesses describe internal factors that hold the company back from competing as effectively as possible. Opportunities and threats, by contrast, come from outside the organization: opportunities are favorable external chances to grow, and threats are external risks to watch for. Policies are internal rules guiding how the organization operates; they describe how things should be done, not necessarily the performance-limiting aspects themselves.

Internal limitations that slow a business's performance are weaknesses. These are the areas inside the organization where it lacks capability, resources, or efficiency, such as skill gaps, outdated technology, inefficient processes, or limited capital. In SWOT analysis, weaknesses describe internal factors that hold the company back from competing as effectively as possible.

Opportunities and threats, by contrast, come from outside the organization: opportunities are favorable external chances to grow, and threats are external risks to watch for. Policies are internal rules guiding how the organization operates; they describe how things should be done, not necessarily the performance-limiting aspects themselves.