Benchmarks can be either internal or external.

• A. False
• B. External
• C. True
• D. Internal only

Answer: (C)

Benchmarking involves comparing your performance or processes to a reference point. That reference can come from inside your organization or from outside it. Internal benchmarks use data from your own services, teams, or historical results to set targets and measure improvement. External benchmarks come from other organizations, industry averages, or published best-practice standards to see how you compare with peers. Both approaches are valid and commonly used, depending on what you’re trying to measure and what data is available. So the statement is true. Choosing “False” would ignore the dual sources of data, and “Internal only” or “External” would be incomplete because benchmarking can legitimately involve both internal and external references.