The First Step in Developing a Knowledge Management System Is

question 187

Multiple Choice

The first step in developing a knowledge management system is to

• A) empower employees to make their own decisions and accept the consequences.
• B) obtain the necessary information system technologies.
• C) recognize that perfect information is readily available in all organizations.
• D) determine what knowledge is most important to the organization.

---

Definitions:

Holding Costs

Expenses associated with storing inventory, including warehouse storage fees, insurance, and spoilage costs, until the inventory is sold or used.

Purchase Price

The amount of money required to acquire a good or service.

Stock-Out Costs

The expenses incurred by a business when it runs out of stock on a particular item, including lost sales, customer dissatisfaction, and potential reduction in market share.

Buyer's Market

A market condition characterized by an abundance of goods available for sale, giving buyers an advantage over sellers in terms of price negotiations.