What are the two types of trends?

• A. Internal and External
• B. Short-term and Long-term
• C. Positive and Negative
• D. Leading and Lagging

Answer: (A)

Trends are patterns that show how something is moving over time, and the most useful distinction is where that movement is coming from. Some trends originate inside the business itself—changes in sales, costs, productivity, or staffing that reflect the company’s operations and decisions. Other trends come from outside the business—shifts in the market, consumer preferences, or the broader economy that the firm must respond to but cannot control. Knowing whether a trend is internal or external helps managers decide whether to improve internal processes or adjust strategy to meet external changes.

Why the other ideas aren’t the best fit here: short-term versus long-term describes how long a trend lasts, not where it comes from. Positive versus negative describes the direction of the trend, not its origin. Leading and lagging refer to timing of indicators relative to a change, not to the source of the trend itself.