During a Recent Board Meeting of GHJ,Inc

question 107

Multiple Choice

During a recent board meeting of GHJ,Inc.,the directors had a heated argument about adopting a decision support system to assist with filtering out irrelevant information from relevant information.Jack argued that the system would be too expensive and their current income level could not justify the expense.Jorge argued that the system would free up time wasted on sorting spam,junk mail,and irrelevant mail such as bank notices from statements and therefore improve profits.Carol argued that the current email system already did these things and if bank notices were not wanted,that could be addressed at the bank's site and did not require investing in additional software.Henry said the system could do these things and more: it could be used to run "what if" scenarios.He said it could compile relevant data on competitors pricing or the costs of proposed projects and use data collected on targeted subjects to vary the "what if" scenarios with other variables.Which of the following was not a benefit of using the decision support system discussed by the board of directors?

• A) Reduce risk
• B) Improve profits
• C) Simplify decision making
• D) Use information effectively

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Definitions:

Discount

A reduction from the usual cost of something, often used to encourage sales or provided as an incentive for early payment.

Direct Quote

A monetary exchange rate where the domestic currency is quoted per each unit of a currency from another country.

Canadian Dollar

The currency of Canada, symbolized as CAD and often represented by the dollar sign $ or C$ to differentiate it from other dollar-denominated currencies.

Political Risk

The potential for losses or other adverse impacts on business activities due to political changes or instability in a country.