A Company Purchases a New Computer System for the Purpose

question 62

Multiple Choice

A company purchases a new computer system for the purpose of streamlining the processing of customer orders. The company's objective is to decrease processing time so that 98% of all orders are shipped within 24 hours of being received. After operating with the new system for three months, the company was shipping 92% of all orders within 24 hours. This situation is an example of a(n) :

• A) ethical situation.
• B) work process weakness.
• C) performance deficiency.
• D) performance opportunity.
• E) planning weakness.

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Definitions:

Intrinsic Value

The inherent or actual value of an asset, investment, or company, based on underlying perception of its true value including all aspects of the business.

Annual

Refers to something occurring once every year.

Par Value

The face value or nominal value of a bond or stock, which is the amount paid out at maturity or the value on which dividend payments are calculated.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and principal repayment.