Final answer:
It is true that the institutionalization of Daoism may have been influenced by Buddhism's introduction into China. As Buddhism offered universal salvation, Daoism may have developed its formal structures and wider appeal to maintain relevance and influence among all social classes.
Step-by-step explanation:
Regarding the statement that organized Daoism took shape as a reaction to Buddhism appearing in China, it is true that Daoism's institutionalization may have been influenced by the presence of Buddhism. The two belief systems co-existed in China, and Buddhism's arrival during the Six Dynasties period (220-589 CE) through monks traveling the Silk Roads likely stimulated religious and philosophical diversity in the region. Daoism, with its emphasis on living in harmony with the dao or 'the way,' was already established, but its formal structures and broader appeal across different social strata, including both elite families practicing Confucianism and commoners, developed further during the Han Dynasty and onwards.
Daoism served to unify people by offering a spiritual life that transcended socio-economic boundaries and promoted a naturalistic view of the world, contrasting with the more rigid hierarchy advocated by Confucianism. Simultaneously, as Buddhism gained traction, offering universal salvation and becoming a widely shared substrate of life in East Asia, Daoism potentially had to institutionalize to maintain its relevance and influence among the populace.