When Third Party Software Companies Are Able to Write Software

question 26

Multiple Choice

When third party software companies are able to write software to integrate with an ERP system,it is said to have:

• A) Open architecture
• B) Clip-ons
• C) Integrated pieces
• D) Piecemeal nodes

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Definitions:

Dividend Payout Ratio

The percentage of earnings paid to shareholders in the form of dividends, calculated by dividing total dividends by net income.

Earnings Per Share

A financial metric that measures a company's profitability by dividing its net income by the number of outstanding shares of its common stock.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; it contributes towards covering fixed costs and generating profit.

Gross Margin Percentage

A financial metric that represents the percentage difference between sales revenue and the cost of goods sold, divided by sales revenue, showcasing the efficiency of a company in managing its production costs.