How Are Information Systems Used at the Industry Level to Achieve

question 65

Multiple Choice

How are information systems used at the industry level to achieve strategic advantage?

• A) by building industry-wide, IT-supported consortia and symposia
• B) by raising the bargaining power of suppliers
• C) by encouraging the entry of new competitors
• D) by enforcing standards that reduce the differences between competitors

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Definitions:

Initial Cash Outflow

Initial cash outflow refers to the amount of money a business or investor must spend upfront to initiate a project, investment, or acquisition.

Cash Inflows

The total amount of money being transferred into a business, typically from operational, investment, and financing activities.

Profitability Index

A calculation used to determine the relative profitability of an investment, defined as the present value of future cash flows divided by the initial investment cost.

Discount Rate

The discount rate used in DCF method to establish the current worth of future financial flows.