ABC Corp Is an Information Technology Company

question 65

Multiple Choice

ABC Corp. is an information technology company. The IT department wants to upgrade the firm's technological infrastructure but the cost of upgrading is likely to take up at least 60 percent of the firm's cash reserves. The finance manager is reluctant to release funds for this purpose. According to him, "The economy is still in a state of uncertainty. The company is better off preserving its cash reserves rather than investing it."
-Which of the following, if true, would most support the finance manager's point of view?

• A) There is a correlation between a firm's level of technological investment and its long-term growth.
• B) Gains from technology are hard to predict on account of uncertain demand.
• C) The returns from other investment opportunities are much more attractive.
• D) Recent reports suggest that the economy is yet to fully recover from the recession.
• E) Banks are hesitant to lend to the company on account of uncertain economic conditions.

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Definitions:

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water.

Lysogenic Pathway

A process in which a virus integrates its DNA into the DNA of the host cell and replicated along with it silently, without killing the host.

Viral DNA

The genetic material of a virus, composed of DNA, which contains the necessary instructions for the virus to replicate within a host cell.

Bacterial Chromosome

A Bacterial Chromosome is a DNA molecule found in bacteria, typically circular and containing most of the genetic information required for the cell's structure, function, and reproduction.