Business Analysis Is Different from Operational Databases

question 43

Multiple Choice

Business analysis is different from operational databases. Which of the following is not a reason why?

• A) Every department has its own method for recording data.
• B) Data stored in operational databases did not allow users direct access.
• C) The data is standardized.
• D) The data collected is not always useful for intended purposes.

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Definitions:

External Financing

Funds a company acquires from outside sources, such as bank loans, issuing bonds, or selling stock, to support its operations and growth initiatives.

Full Capacity

Full capacity refers to the maximum level of output that a company can sustain over a period, utilizing all available resources efficiently.

External Financing Needed

The amount of funding a company must seek from outside sources to finance its planned activities when internal cash flow is insufficient.

Profit Margin

This financial ratio measures the amount of net income earned with each dollar of sales by comparing net income to net sales.