Which characteristic indicates that a model should reflect the actual business practices of an organization?

The characteristic that indicates a model should reflect the actual business practices of an organization is realism. A realistic model closely mirrors the organization's actual operations, culture, and procedures, allowing for more effective analysis and decision-making. When a model accurately reflects how a company functions, it ensures relevancy and applicability, making it easier for decision-makers to understand and interpret the data or findings produced by the model. This alignment with real-world practices enables organizations to use the model effectively for forecasting, strategy development, and performance assessment, leading to better overall outcomes.

Flexibility, ease of use, and low cost are important traits for various reasons, but they do not specifically ensure that a model reflects the actual business practices of an organization. Flexibility indicates the ability to adapt to changes, ease of use refers to how user-friendly a model is, and low cost is about the financial investment required. While all of these characteristics can contribute to the overall effectiveness of a model, they do not inherently ensure the model's accuracy in reflecting an organization’s specific practices and operations.