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Enterprise Resource Planning (ERP) Software Combines All Functional Units of a Firm

question 195

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Enterprise resource planning (ERP) software combines all functional units of a firm into the production of goods and services, and may even include subsidiaries and other firms.


Definitions:

Minimum Required Rate of Return

The lowest acceptable return on an investment, determined by an investor's risk tolerance and other factors, used as a benchmark for evaluating potential investments.

Operating Assets

Cash, accounts receivable, inventory, plant and equipment, and all other assets held for operating purposes.

Margin

The difference between the selling price of a product or service and its production or acquisition cost, often expressed as a percentage.

Return on Investment

A measure of the profitability of an investment expressed as a percentage of the initial amount invested.

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