_____ Involves More Risk Than Other Changeover Methods

question 22

Multiple Choice

_____ involves more risk than other changeover methods.

• A) Direct cutover
• B) Pilot operation
• C) Parallel cutover
• D) Phased operation

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Definitions:

Cumulative Cash Deficit

The total amount by which a company's cash outflows exceed its cash inflows over a certain period, indicating a need for additional financing or cost reductions.

External Funding

Capital that comes from outside of a company, including loans, lines of credit, or equity investments from external investors.

Financial Distress

A situation where a company is struggling to meet its financial obligations and is at risk of bankruptcy.