Which of the Following Is a Typical Characteristic of an Open

question 131

Multiple Choice

Which of the following is a typical characteristic of an open system?

• A) It is an organization that is convened for a specific purpose and disbands when its task is completed.
• B) It is a system where each member has the authority to make decisions about how they share and complete their work.
• C) It is the system where communication flows only between individual members and a hub.
• D) It is the system in which subgroups have limited communication with one another.
• E) It is a system that transforms resource inputs from the environment into product outputs.

---

Definitions:

Net Assets

The total assets of an entity minus its total liabilities, indicating the entity's net worth or equity value.

Consolidated Financial Statements

Financial statements that present the financial position and results of operations of a parent company and its subsidiaries as one single entity.

Parent Company

A parent company is a corporation that owns enough voting stock in another corporation (subsidiary) to control its board of directors and therefore its operations and policies.

Subsidiary

A company that is completely or partially owned and wholly controlled by another company, referred to as the parent company.