In the Direct Cutover Conversion Strategy, the New System

question 12

Multiple Choice

In the direct cutover conversion strategy, the new system

• A) is tested by an outsourced company.
• B) replaces the old one at an appointed time.
• C) and the old are run together.
• D) is introduced in stages.

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Definitions:

Dissolved

The process of legally dissolving a corporation or partnership, effectively ending its existence.

Close Corporation

A business structure characterized by a small number of shareholders, no need for formal board meetings, and less stringent regulatory requirements.

Managerial Control

A theory of corporate management that favors insulating managers from shareholders by limiting the shareholders’ power to vote and by making it difficult for the shareholder to sue managers.

Outstanding Shares

Represents the total number of shares of a corporation's stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.