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:

---In management, an open system is one where a company functions while becoming increasingly mixed and complex due to its growing relationship with its environment. For an effective open system, an organization needs to manage the resources flowing into the company and out to the environment.

---The business environment is the climate or set of conditions- economic, social, political or institutional conditions in which business operations are conducted. The environment of business consists of all those external things to which it is exposed and by which it may be influenced directly or indirectly.