At their core, companies are production systems that combine inputs such as labor, raw materials, capital, and knowledge to produce outputs such as finished goods or services.

Question

Quizplus · Accepted Answer

This is a true statement. Companies are essentially systems that transform inputs into outputs through various production processes, whether they are manufacturing products or providing services. The inputs can vary depending on the industry and company, but typically include labor, materials, capital, and knowledge or expertise. The outputs can also vary, but usually include finished goods or services that are sold to customers or clients.

At Their Core, Companies Are Production Systems That Combine Inputs