All of the Following Are Disadvantages of an ERP System

question 2

Multiple Choice

All of the following are disadvantages of an ERP system except

• A)an ERP provides an integrated view of the organization's data.
• B)ERP software and hardware can cost midsized companies between $10 million and $20 million dollars.
• C)ERPs frequently cause organizations to change their business processes to standardized ones.
• D)ERPs are relatively complex.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.

Net Present Value

This is the calculation used to find the present value of cash flows from an investment, adjusted for time and interest, to determine profitability.

Initial Investment

The initial amount of money spent to purchase an asset, start a project, or launch a business venture, serving as a baseline for measuring future returns.

Annual Cash Inflows

The total amount of money coming into a business from its activities or investments over the course of a year.