Final answer:
The statement about Information Technology (IT) being necessary for a firm to achieve its business objectives is true. IT includes various tools and methods to improve business efficiency and competitiveness. IT influences both the size and function of businesses, contributing to evolving market dynamics.
Step-by-step explanation:
The statement that Information Technology (IT) consists of all hardware and software that a firm needs to use in order to achieve its business objectives is true. IT encompasses a wide range of technology tools, including computers, software, and computer peripherals, as well as the methods for combining inputs to produce outputs, such as automated systems, computerized recordkeeping, and various forms of communication networks.
Those who work in the IT field may begin by fixing electronic devices but can advance to various specializations, including software programming and network maintenance. Faced with the constant evolution of technology, businesses must adapt by using IT to increase efficiency, lower costs, and stay competitive in the market.
The choice of technology affects the size and functioning of a firm. Newer IT solutions can lead to both decentralization, favoring small firms, and centralization, favoring larger firms, depending on how the technology is deployed and managed within the business context.