The Drawbacks of ERP Systems Include All of the Following

question 12

Multiple Choice

The drawbacks of ERP systems include all of the following except:

• A) They are complex
• B) They are expensive
• C) They are time-consuming to implement
• D) Companies may need to change existing business processes to fit the software
• E) They consist of modules

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Definitions:

Entry Barriers

Entry Barriers are obstacles that make it difficult for new entrants to enter an industry, protecting existing firms from competition.

Oligopoly

An oligopoly is a market structure dominated by a few large firms, leading to limited competition and possibly collaborative behavior to control prices and market share.

Increasing Returns To Scale

Long-run average total cost declines as output increases (also referred to as economies of scale).

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, such as high start-up costs or strict regulations.