Why are large as well as small and medium-size corporations considered as open systems?
A) Because their physical locations do not have fences.
B) Because they have open-air facilities.
C) Because they interact with their external environment from which they receive inputs that they later transform into outputs sold to customers.
D) Because they have strong bargaining power over their suppliers and customers.

Question

Quizplus · Accepted Answer

Corporations are considered open systems because they interact with their external environment, receiving inputs (such as resources, information, and labor) which they transform into outputs (products or services) that are sold to customers. This interaction with the external environment is a fundamental characteristic of open systems.

Why Are Large as Well as Small and Medium-Size Corporations