Bachelor of General Studies (BGS) Degree Practice Exam

In the context of business and society, what is an interactive system?

1. A model that emphasizes competition

2. A framework where actions of each influence the other

3. An isolated set of operations

4. A fixed arrangement of market players

The correct answer is: A framework where actions of each influence the other

An interactive system in the context of business and society refers to a framework where the actions of each entity influence the other. This concept underscores the idea that businesses do not operate in isolation; instead, they are part of a dynamic ecosystem where various stakeholders, such as consumers, competitors, suppliers, and regulators, interact and affect one another's decisions and behaviors. In an interactive system, feedback loops are critical. For instance, consumer preferences can drive businesses to change their operations, which in turn affects market competition and policy decisions. This approach recognizes the interconnectedness of various elements in the business environment, highlighting that changes in one area can have a ripple effect throughout the system. In contrast, the other options describe systems that do not capture this level of interactivity. A model focused solely on competition fails to incorporate the cooperative and reciprocal elements present in business interactions. An isolated set of operations suggests a lack of connection to the broader environment, while a fixed arrangement of market players implies rigidity and a lack of responsiveness to changes, which is not characteristic of an interactive environment. Thus, the emphasis on mutual influence firmly supports the definition of an interactive system.