Which of the Following Statements Best Describes the Risks of ERP

question 31

Multiple Choice

Which of the following statements best describes the risks of ERP systems?

• A)The risks of implementing and operating ERP systems are nearly identical to the risks of implementing and operating IT systems.
• B)The risks of operating and implementing ERP systems are greater than the risks of implementing and operating IT systems, due to the scope, size, and complexity of ERP systems.
• C)The risks of implementing ERP systems are greater than the risks of implementing IT systems, but the operating risks are nearly identical.
• D)The risks of operating ERP systems are greater than the risks of operating IT systems, but the implementation risks are nearly identical.

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Definitions:

Compounded Semi-annually

An interest calculation method where interest is added to the principal sum of a deposit or loan twice a year, leading to compound interest.

Effective Rate

The effective rate, also known as the annual equivalent rate, is the interest rate on an investment or loan that accounts for the effects of compounding over a given period.

APR

Annual Percentage Rate, which is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, credit card, etc.

Rate Of Return

The appreciation or depreciation of an investment over a set period, quantified as a percentage of the investment's starting value.