When a Single Company That Is Implementing an ERP System

question 44

True/False

When a single company that is implementing an ERP system chooses to use one company to provide an operations module, another to provide the sales and marketing application, and yet another company to provide the finance and accounting module, that single company has chosen to utilize the single integrator approach.

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Definitions:

Voting Stock

Shares that give the shareholder a right to vote on company matters, such as electing the board of directors.

Control

The power to direct the financial and operating policies of a business with a view to gain economic benefits from its activities.

Accounting for Business Combinations

The process of accounting for the acquisition of one company by another and combining the financial statements.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group involving a parent and its subsidiaries, recognizing and measuring the assets acquired and liabilities assumed at their fair value on the acquisition date.