In Comparing the Pros and Cons of Developing Application Software

question 8

Multiple Choice

In comparing the pros and cons of developing application software with internal resources versus buying off-the-shelf software, an advantage of off-the-shelf is ____.

• A) the organization can use the software to gain a lasting competitive advantage
• B) the lead time to implement the software is greatly shortened
• C) the software will match the organization's needs exactly with no need for customization
• D) none of the above

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members, usually in the form of cash from its current or retained earnings.

Operating Activities

Transactions and events that affect the net income of a business, involving the primary revenue-producing activities of the entity.

Indirect Method

A method used in cash flow statement preparation that starts with net income and adjusts for changes in balance sheet accounts to arrive at cash provided by operating activities.

Cash Dividends

Earnings distributed by a company to its investors, usually representing a portion of profits.