Final answer:
A closed systems approach indicates that firms are highly influenced and affected by their environments.
Step-by-step explanation:
A closed systems approach indicates that firms are highly influenced and affected by their environments. This statement is True. In business, a closed systems approach refers to an organization that operates separately from its external environment, disregarding the impact of external factors such as competitors, customers, and market trends. However, in reality, firms are highly influenced by their environments, which include economic conditions, government regulations, consumer behavior, and industry trends.
For example, a company operating in the retail industry may experience a decline in sales due to a recession in the economy. In this case, the external economic environment directly impacts the performance of the firm. Similarly, a firm's success is often determined by its ability to adapt to and leverage opportunities in its environment. For instance, a technology company that quickly adopts emerging trends and consumer demands is likely to thrive in a fast-changing industry.