Distinguish between A closed system and an open system.

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Closed system
This system has no interaction with the environment. It neither transmits information to the outside world nor receives any information from the outside world. It‘s mainly a scientific concept e.g. Physics experiments.
Open System
This system interacts with its environment. It is a system with a feedback mechanism that promotes free exchange of information between the system and the external entities. Organizations are good examples of open systems.

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