When Developing E-Business Systems,an In-House Solution Usually Requires a _____

question 8

Multiple Choice

When developing e-business systems,an in-house solution usually requires a _____ for a company that must adapt quickly in a dynamic e-commerce environment.

• A) smaller initial investment and provides more flexibility
• B) smaller initial investment but provides less flexibility
• C) greater initial investment but provides more flexibility
• D) greater initial investment and provides less flexibility

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Definitions:

Market Risk

The risk of losses in positions arising from movements in market prices.

Firm-specific Risk

The portion of an asset's risk that is attributable to the company's individual factors, uncorrelated with general market movements.

Nonsystematic Risk

The part of an investment's risk that is specific to the investment, unrelated to the market's overall movements.

Diversification

The strategy of spreading investments across various financial assets to reduce exposure to risk.