A Disadvantage of ________ Is That the New System's Modules

question 93

Multiple Choice

A disadvantage of ________ is that the new system's modules may be tightly integrated, so implementing one without the others may create some confusion and require temporary interfaces to the old systems.

• A) phased implementation
• B) direct implementation
• C) parallel implementation
• D) hot standby implementation

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Definitions:

Working Capital Assets

Current assets that are used in the day-to-day operations of a business to fund operations and cover short-term liabilities.

Liabilities

Financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of economic benefits.

Maturity Matching Principle

A financial strategy that involves matching the maturities of assets and liabilities to reduce risk in managing working capital and financing.

Revolving Credit Agreement

A Revolving Credit Agreement is a financial arrangement which allows the borrower to withdraw, repay, and redraw loans repeatedly up to a certain credit limit.