The ____ subsystem, also called the ____ function, physically transforms raw materials into finished goods and services.

A) managerial; technical
B) technical; production
C) boundary-spanning; managerial
D) technical; organizing
E) managerial; organizing

The technical subsystem deals with the physical transformation of raw materials into finished goods and services. This function is also commonly referred to as the production function. Therefore, option B is the most appropriate answer. Option A refers to the managerial subsystem, which involves planning, organizing, and controlling various aspects of the organization. Option C refers to the boundary-spanning subsystem, which involves interacting with the environment around the organization. Option D combines the technical and organizing subsystems, which deal with coordinating and directing resources within the organization. Option E combines the managerial and organizing subsystems, which deal with planning and directing various activities within the organization. None of these options clearly address the physical transformation of raw materials into finished goods and services, making option B the best choice.