Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which type of value network focuses on internal relationships within an organization?

1. External

2. Collaborative

3. Strategic

4. Internal

The correct answer is: Internal

The type of value network that focuses on internal relationships within an organization is characterized by the way various departments, teams, and employees interact and collaborate to create value. This internal network encompasses processes, workflows, and communication channels that facilitate the sharing of resources, knowledge, and information among different parts of the organization. Understanding this internal focus is essential as it highlights the significance of organizational culture, teamwork, and efficient communication in achieving business objectives. Efficient internal value networks can lead to improved productivity, innovation, and overall performance, as they ensure that everyone within the organization is aligned and working towards common goals. In contrast, options that refer to external or collaborative relationships emphasize interactions outside the organization or partnerships rather than the internal dynamics that are crucial for fostering a robust internal environment.