Answer:
TRUE
Step-by-step explanation:
You need to know something about the hierarchy and culture of the company in order to understand how a specific business firm uses information systems because generally, information flows upwards in an organisation via the hierarchical structure.
The flow of Information passes through each level of the hierarchy to the top. Then follows the assessment of such received information, and dependent on the outcome of the information assessment, a decision is made.
Also, just like information flows upwards through the hierarchy, so also does decision flow up via the hierarchical structure to the bottom or the point where the decision is to be implemented.
Hence, it is true that you need the knowledge of an organisation's hierarchy in order to understand the flow of information.