The correct answer is: D. 1, 2, 3 and 5
The internal environment of a business is the set of factors that are within the control of the business. These factors include the business’s mission, vision, values, goals, strategies, structure, culture, and resources.
Business ethics and moral standards are the principles that guide the business’s decision-making. These principles should be aligned with the business’s mission, vision, and values.
Business and managerial policies are the rules and guidelines that govern how the business operates. These policies should be designed to achieve the business’s goals and objectives.
Prospects of business development are the opportunities and threats that the business faces in the future. The business should develop strategies to capitalize on the opportunities and mitigate the threats.
Government rules and regulations are the laws and regulations that the business must comply with. The business should ensure that it is in compliance with all applicable laws and regulations.
Industrial relations are the relationships between the business and its employees. The business should develop policies and procedures to ensure that its employees are treated fairly and that their rights are protected.
Option A is incorrect because it does not include business ethics and moral standards.
Option B is incorrect because it does not include business and managerial policies.
Option C is incorrect because it does not include prospects of business development.
Option D is the correct answer because it includes all of the factors that are within the control of the business.