Which of the Following Is a Valid Reason for a Company

question 26

Multiple Choice

Which of the following is a valid reason for a company to create a new information system?

• A) to project a modern image
• B) to avoid falling behind the technology curve
• C) to help employees achieve the strategies of the business
• D) to show its social networking presence on the Web

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its expected useful life to account for its decline in value.

Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment, focusing on cash flow rather than profitability.

Time Value

The idea that having money now is more valuable than having the same amount later because of the possible income it can generate.

Obsolescence

The process of an asset becoming outdated or no longer used, often due to technological advancements.