In the Context of Using Information Technologies for a Competitive

question 101

Multiple Choice

In the context of using information technologies for a competitive advantage, which of the following statements is true of a bottom-line strategy?

• A) It focuses on improving efficiency by reducing overall costs.
• B) It focuses on generating new revenue by offering new products and services.
• C) It focuses on enhancing rivalry among existing competitors.
• D) It focuses on helping different market segments achieve a cost advantage.

Recognize the different methods used in capital investment analysis, including their categorization into present value and non-present value methods.

Identify the principles and processes involved in capital investment analysis and the importance of aligning investment proposals with long-term goals.

Calculate the expected average rate of return for given investment proposals.

Understand the significance of present value in analyzing capital investment proposals and distinguish between methods that consider and ignore present value.

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Definitions:

Re-Invested

Capital or earnings that are put back into a business or investment to support growth or generate additional revenue.

Company

An entity engaged in commercial, industrial, or professional activities, either as a single individual or a group of people structured as a corporation, partnership, or sole proprietorship.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

Long Lived Asset

An asset that is expected to provide economic benefits over a prolonged period, typically over one year, such as buildings, machinery, and equipment.