An Important Drawback of an ERP System Is That a Failure

question 42

True/False

An important drawback of an ERP system is that a failure can be catastrophic.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the business's operating cycle, whichever is longer.

Operating Cash Flows

Cash generated from a company's regular business activities, indicating the company’s ability to generate sufficient cash to maintain and expand operations.

Net New Borrowings

The total amount of new debt a company takes on minus any debt repayments, indicating the net change in debt level.

Net Working Capital

The discrepancy between a firm's immediate assets and liabilities, reflecting its short-term fiscal well-being and operational effectiveness.