Question

Which of the following suggests weakness in a company’s internal environment?

The audit committee regularly meets with the external auditors

The Board of Directors are made of independent directors

Formal employee performance evaluations are prepared every three years

The company has an up-to-date organizational chart

Answer 1

Answer : Formal Employee performance evaluations are prepared every three years

Explanation :

The weakness in a company's internal enironment is because of Formal employee performance evaluations are prepared every three years . Employee performance evaluations should be made early ( yearly / quarterly ) as In an employee performance review, managers evaluate that individual's overall performance, identify their strengths and weaknesses, offer feedback, and help them set goals. These early evaluations let employees know they have a vested interest in helping company achieve their goals, which is proven to increase their level of engagement.