A Good Information System Can Allow a Firm to

question 38

Multiple Choice

A good information system can allow a firm to

• A)increase productivity.
• B)gain competitive advantage.
• C)reduce turnover.
• D)reduce costs.
• E)increase customers.

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Definitions:

Acid-test Ratio

A stringent indicator of a company's liquidity, calculating its ability to cover short-term obligations with its most liquid assets, excluding inventory.

Inventory Turnover

A measure of how often a company's inventory is sold and replaced over a certain period of time, indicating efficiency in inventory management.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

Generate Sales

The process of creating revenue through the marketing and selling of goods or services.