Correct Answer: Employees

Solution : The correct answer is (C) Employees

The internal environment refers to the factors and elements within the organization that directly influence its operations, culture, and performance. Employees are a key component of the internal environment as they form the workforce within the organization. They contribute their skills, knowledge, and expertise to the functioning of the organization and play a crucial role in achieving its goals. The internal environment also includes other components such as organizational structure, leadership, culture, systems, processes, and resources that are directly controlled and influenced by the organization itself. Therefore, employees are a component of the internal environment.