When a Company Purchases an "Industry Standard Process" from a Vendor

question 97

Multiple Choice

When a company purchases an "industry standard process" from a vendor like SAP, the company may benefit

• A) by gaining "best practices" it would otherwise have developed on its own.
• B) because employees will conform with the changes rapidly and be more efficient.
• C) because customers will demand lower prices.
• D) hardly ever.
• E) because the company will have a unique application that will generate competitive advantage.

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Definitions:

Acquisition

The process of obtaining control of another corporation, purchasing its shares, or assets, to expand or diversify operations.

Voting Common Stock

Shares that give the shareholder voting rights in corporate decisions, typically one vote per share owned.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid out before any dividends to common stockholders.

Net Income

A company's overall earnings, after deducting taxes and all other expenses from its total revenue.