Which of the Following Best Describes the Primary Reason for Implementing

question 9

Multiple Choice

Which of the following best describes the primary reason for implementing a new information system, from a business perspective?

• A) The system enables the firm to create new products and services.
• B) The system will create new value for the firm, beyond its costs.
• C) The system will automate key business processes.
• D) The system is in use by our primary competitors.

---

Definitions:

Interest

The cost of borrowing money, typically expressed as a percentage of the principal amount.

Capital Balances

The amount of money that owners have invested in a company, minus any withdrawals, often shown in the equity section of the balance sheet.

Net Income

A company's profit remaining after all expenses, taxes, and losses have been deducted.

Closing the Revenue

The process of finalizing all revenue transactions within a given period, marking the end of a business's revenue cycle for that timeframe.