The Three Themes of the Text Book Include All of the Following

question 50

Multiple Choice

The three themes of the text book include all of the following except:

• A) enterprise systems
• B) risk assessment
• C) e-business
• D) internal control

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Definitions:

Scenario Analysis

Scenario analysis is a process of analyzing possible future events by considering alternative possible outcomes (scenarios), thereby assessing the impact of various factors on decision outcomes.

Simulation Analysis

A method used in risk management that uses statistical models to predict the outcome of a decision under conditions of uncertainty.

Degree Of Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume, indicating financial risk.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the present value of all future cash flows minus the initial investment cost.