Flexibility refers to how costly it is for a firm to alter its strategic and organizational decisions.

Question

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Flexibility refers to the ease or difficulty with which a firm can change its strategic and organizational decisions. If a firm has high flexibility, it can quickly react to changes in the market or industry without incurring significant costs. If a firm has low flexibility, it may find it challenging to adjust to changes, and it may be costly to do so. Therefore, the statement is true.

Flexibility Refers to How Costly It Is for a Firm