What term is used to describe individuals and units within a firm that receive services from others?

Prepare for the NOCTI General Management Exam. Utilize interactive flashcards and multiple-choice questions with comprehensive hints and explanations. Ace your test!

The term used to describe individuals and units within a firm that receive services from others is "internal customers." In a business context, internal customers are typically employees or departments that rely on the services or outputs of other employees or departments to fulfill their own roles. For instance, the sales department may depend on the marketing department for materials and support, or the finance department may require reports from different areas of the organization. The concept emphasizes the importance of various internal relationships within the organization, as a strong understanding and fulfillment of internal customer needs can enhance overall efficiency and satisfaction within the workplace.

On the other hand, external customers refer to individuals or entities outside the company who purchase or use its products or services. Stakeholders encompass a broader range of individuals or groups who have an interest in the business, including customers, employees, investors, and the community. Investors specifically focus on individuals or entities that provide capital to the business, seeking a return on their investment. Understanding the distinct roles of these groups highlights the unique place internal customers hold in fostering a cooperative and productive work environment.

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