Consider the Following Short Case as You Respond to the Next

question 56

Multiple Choice

Consider the following short case as you respond to the next question: Scott and Logan are the CEO and CFO of MLN Corporation. The firm has lately been losing customers to MLN's competitors; Scott and Logan believe an ERP system could help MLN obtain more timely information that will enable them to retain old customers and acquire new ones. They formed a six-person team with representatives from three of MLN's ten departments and instructed them to use the steps in the systems development life cycle to choose and implement an ERP system. A year later, the team had completed its work and implemented the system by transferring data from MLN's general ledger software to the ERP system.Umble and Umble suggested six necessary conditions for a successful ERP implementation. Which of the following statements is most true?

• A)Forming a six-person team ensures that ERP will be seen as an enterprise-wide venture.
• B)Resolving multi-site issues may not have been an issue for MLN.
• C)Both A and B are true.
• D)Neither A nor B is true.

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Definitions:

Mortgage Insurance

Insurance that compensates a lender for losses due to a borrower’s default on a mortgage loan.

Debtor

An individual or organization that owes money to another party, typically as a result of being lent a sum of money or extended credit.

Default

Failure to pay a debt when it is due.

Mortgage

A legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.