Please Consider the Following Short Case as You Respond to the Next

question 39

Multiple Choice

Please consider the following short case as you respond to the next question: Sue and Sally are partners in a small local bakery specializing in wedding and birthday cakes. They use a simple Excel spreadsheet to record journal entries and prepare financial statements and tax returns. Robert, the owner of a consulting company that installs and maintains ERP systems, has recently approached them about the possibility of implementing an ERP system in their operations. If they accept his offer, Robert will provide a series of online tutorials to help them learn about the new system. Sue and Sally believe the implementation of the ERP system will make it easier for them to borrow money to expand the bakery.If Sue and Sally accept Robert's proposal, which of the following common causes of ERP implementation failure is likely to be the most serious?

• A)Poor leadership from top management
• B)Significant technical difficulties
• C)Inadequate education and training
• D)None of the above. Since the company is so small, the ERP project is likely to succeed.

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Definitions:

Financing Activities

Transactions and events where a business raises funds to support its operations or capital expenditures often through borrowing or issuing equity.

Operating Activities

Transactions and others events that are not investing or financing activities that enter into the determination of net income.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been deducted from total revenue.

Indirect Method

A technique used in cash flow statement preparation that starts with net income and adjusts for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.