A Company Implemented a New Information System Two Months Ago,but

question 47

Multiple Choice

A company implemented a new information system two months ago,but it has not resulted in concrete increases in productivity.A similar system has been in place at the company headquarters for the past two years,and this system has resulted in significant,quantifiable benefits.Which of the following reasons is the most likely explanation for the lack of results?

• A) The benefits of the new information system are difficult to pinpoint because the firm is considering the wrong indicators.
• B) The new system is being used to redistribute market share rather than make the whole market bigger.
• C) It can take years from the first implementation of this new system before the magnitude of benefits is felt by the organization.
• D) The benefits of the new information system are difficult to pinpoint because the firm is not familiar with the working of the system.
• E) The new system may be beneficial for individual firms, but not for a particular industry or the economy as a whole.

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Definitions:

Owner's Capital Account

An equity account that represents the amount of money that the owner has invested in the business plus any profits or minus any losses.