Which of the Following Statements Accurately Describes the Open Systems

question 80

Multiple Choice

Which of the following statements accurately describes the open systems model of organisations?

• A) The environment provides resource inputs including finished goods and/or services.
• B) The environment consumes product outputs including people, money, materials, technology and information.
• C) Workflows are part of the resource inputs.
• D) Resource inputs affect product outputs through a feedback loop.
• E) The organisation creates a transformation process for turning resources into outputs.

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Definitions:

Average Rate of Return

A financial metric used to estimate the profitability of an investment, calculated as the average annual profit of the investment divided by its initial cost.

Time Value of Money

The concept that money available at the present is worth more than the same amount in the future due to its potential earning capacity.

Accounting Income

The income of a company as calculated under accounting rules, which may differ from taxable income due to differences in accounting and tax regulations.

Average Rate of Return

A measure of the profitability of an investment, calculated as the average annual profit of the investment divided by the initial cost.