Which of the Following Statements Is True About the E-Business

question 19

Multiple Choice

Which of the following statements is true about the e-business innovation cycle?

• A) The vertical dimension of the cycle shows the life expectancy of a particular information technology, and the horizontal dimension shows time.
• B) The vertical dimension of the cycle shows the extent to which an organization derives value from a particular information technology, and the horizontal dimension shows time.
• C) The vertical dimension of the cycle shows the expected investments required for a particular information technology, and the horizontal dimension shows time.
• D) The vertical dimension of the cycle shows the efficiency of a particular information technology, and the horizontal dimension shows life expectancy of that information technology.
• E) The vertical dimension of the cycle shows the user-friendliness of a particular technology, and the horizontal dimension shows the investment in that technology.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including labor and materials.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of the business.

Debt-to-Equity Ratio

A financial metric that shows the comparative amount of debt and shareholders' equity utilized to fund a company's assets.

Book Value

The net value of an asset or liability according to its listing in the company's balance sheet, generally equal to its original cost minus any depreciation, amortization, or impairment costs.