Which of the Following Statements Is TRUE About Choosing Whether

question 37

Multiple Choice

Which of the following statements is TRUE about choosing whether to develop information systems (IS) or business processes first?

• A) For a business process that is being constructed, building an information system (IS) after creating the business process is likely to cause problems.
• B) If an information system is built after the creation of business processes, other business processes that use the same information system (IS) can be integrated easily.
• C) If business processes are built after the information system (IS) development process, activities that are not part of the IS may not be considered.
• D) If an information system (IS) is built first, the development team should determine the requirements by itself.

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Definitions:

Unique Risk

Another term for diversifiable risk, emphasizing the idea that this risk is specific to an individual investment and not the market as a whole.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Capital Allocation Line

A line on a graph that shows the rates of return of portfolios that optimally combine risk and return for an investor.

Risk-averse Investors

Individuals who prefer lower returns with known risks rather than higher returns with unknown risks.