When a Company Experiences a Lack of Focus, the IT

question 13

Multiple Choice

When a company experiences a lack of focus, the IT unit can become overwhelmed as it tries to deliver many projects that may have little company-wide value or can't be implemented well simultaneously. This is often the result of senior management failing to answer the question:

• A) Which IT capabilities should be companywide?
• B) How much should be spent on IT?
• C) Which business processes should receive our IT dollars?
• D) Whom should we blame if an IT initiative fails?

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Definitions:

Dividend Payments

Cash payments made by a company to its shareholders, usually derived from the company's profits.

Financing Activities

Transactions related to raising capital, repaying investors, and restructuring company debt within a business's cash flow statement.

Long-Term Debt

Borrowed money that is due for repayment more than one year into the future.

Financing Activities

Financing activities involve transactions between a company and its investors or creditors, affecting the equity and long-term liabilities on the balance sheet.