Contingency Theory Is Based on Closed-Systems Theory and Recognized That

question 26

True/False

Contingency theory is based on closed-systems theory and recognized that there are many internal and external factors that influence organizational behavior.

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Definitions:

Return on Investment

A financial metric evaluating the profitability or effectiveness of an investment, calculated by dividing net profit by the investment's cost.

Common Fixed Costs

Costs that do not change with the level of production or sales and are shared across different products or departments within a company.

Decision Making

The process of choosing among alternative courses of action or solutions to a problem in order to achieve a desired outcome.

Outside Supplier

An outside supplier is an external entity that provides goods or services to a company, typically not affiliated with the company’s internal supply chain.