In the context of system thinking, stocks are the foundation of a system. They are the elements that can be seen, felt, counted, or measured. They are affected by the changes in the flows into or out of the same stock, forming a feedback loop. An example of this concept is the relationship between interest and the amount of money in a bank account.
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How do you avoid wasted time, money, and resources from short-sighted decisions? When you think in systems, you can learn to recognize the relationshi...
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Stocks are the "foundation" of a system and are the element that you can see, feel, count, or measure. A feedback loop is formed when changes in stock affect the flows into or out of that same stock. A prime example of this concept is interest as it relates to the amount of money in a bank account. Likewise, if you see less money in your account, you might react and take more work and thus the cycle continues.