Which of the Following Is NOT Part of the Process

question 84

Multiple Choice

Which of the following is NOT part of the process of establishing an information system?

• A)Developing documentation and training users
• B)Monitoring system effectiveness and making appropriate modifications
• C)Testing the system and making appropriate modifications
• D)Creating a transaction-processing system to handle all information needs
• E)Determining hardware needs and acquiring equipment

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Definitions:

Unlevered Cost of Capital

The cost of capital for a company not taking into account its debt, essentially the return required on equity investment.

Business Risk

The exposure a company or investor faces due to uncertainties in the market or industry, impacting the company's ability to generate profits.

Financial Risk

The possibility of losing money on an investment or business venture, including risks related to currency, interest rates, and solvency.

Debt/Equity Ratio

A ratio exemplifying the balance of equity to debt in the financing structure for a company’s assets.