Which of the Following Is a Limitation of Using a Financial

question 31

Multiple Choice

Which of the following is a limitation of using a financial approach to evaluate information systems?

• A)Inability to measure ROI
• B)Inability to control vendor costs
• C)Inability to assess risk
• D)Inability to assess costs from organizational disruption
• E)Inability to assess the cost of technology

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Definitions:

Capital Lease

A leasing arrangement that allows a lessee to record the leased asset as their own in their financial statements because it effectively transfers nearly all risks and rewards of ownership.

Lease Obligation

A financial commitment that a lessee is required to make under the terms of a lease, typically involving regular payments over a specified period.

Financial Reporting

The process of disclosing financial information and statements to the external users to help them make informed decisions about investing in or lending to the company.