Question

“Business is an open system " Comment upon this statement and discuss the
nature of interaction between a business system and its environment,​

Answer 1

Answer:

An Business can be described as an open system because it:

I.     Has interrelated and interdependent parts (departments and divisions) that function as a whole.

II.     Gets inputs from and distributes outputs to the external environment.

III.    Impacts, and is impacted by, the external environment.

Explanation:

Answer 2

An organisation is an open system since it communicates with its surroundings by sending and receiving data.

• An open system communicates with its surroundings by sending and receiving data.
• An open framework in management is one in which an organization operates while becoming increasingly mixed and dynamic as its relationship with its environment evolves.
• An organisation must control the resources coming into and out of the business in order to provide an efficient open system.
• Email systems, for example, are open systems that allow several people to be included in a note. A public relations department is another example of a transparent structure that must regularly communicate with the outside world.