Which of the Following Is Not an Advantage of the Buy

question 27

Multiple Choice

Which of the following is not an advantage of the buy option for acquiring IS applications?

• A)Few types of off-the-shelf software are available, thus limiting confusion.
• B)The software can be tried out.
• C)The buy option saves time.
• D)The company will know what it is getting.
• E)All of these

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Definitions:

Net Cash

The amount of cash available after adjusting for cash inflows and outflows over a given period.

Financing Activities

Transactions and events that involve raising funds for the company and repaying funds to investors, such as issuing stock or borrowing.

Cash Dividend

A payment made by a company out of its profits to shareholders in the form of cash.

Financing Activities

Activities that result in changes in the size and composition of the equity and/or borrowings of a company.