An Organization Should Acquire Software from In-House Developers When

question 105

Multiple Choice

An organization should acquire software from in-house developers when:

• A) the supported task is generic.
• B) complete systems that cross functional boundaries are needed.
• C) the task requires custom support and the system cannot be built internally.
• D) the resources and staff are available and the system must be built from scratch.
• E) None of the above is correct.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's profits or losses.

Owns

The act of having legal possession or right to an asset or property.

Variable Interest Entity

A variable interest entity is a legal entity in which an investor holds a controlling interest that is not based on the majority of voting rights, leading to complex consolidation rules.

Consolidated Statements

Financial reports that aggregate the financial position and operating results of a parent company and its subsidiaries, showing the financial health and performance of the entire corporate group as a single entity.