What Are the Implications for Firms That Do Not Have

question 18

Multiple Choice

What are the implications for firms that do not have common database systems with consistent formats across their enterprise?

• A) They can save infrastructural and operational costs.
• B) They can expect to leverage economies of scale by serving more customers.
• C) They can hedge against the risk of data redundancy.
• D) They struggle to manage their value chain efficiently.
• E) They profit from the aggregation of diverse data sets and enhance their repositories.

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Definitions:

Liability

A financial obligation or debt owed by a business or individual to others, which requires settlement in the future.

Asset

Resources owned or controlled by a business, expected to produce future economic benefits.

Accounting Period

A specific period of time used for financial reporting, typically a quarter or year.

Trial Balance

A Trial Balance is a report that lists the balances of all general ledger accounts at a specific point in time, utilized to verify the total debits equal total credits in the accounting system.