A General Rule of Thumb Is That an Organization Should

question 46

Multiple Choice

A general rule of thumb is that an organization should consider the buy approach when ________.

• A) license software meets 75 to 80 percent of its requirements
• B) customer demands emphasize on customization of a product
• C) organizations need to retain the same business processes
• D) softwares need to fit enterprise architecture perfectly

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Definitions:

Retained Earnings

Profits that a company has reinvested into the business rather than distributing to shareholders as dividends.

Financial Treatment

The method or approach used in accounting to manage and report the financial aspects and transactions of a business.

Ownership

The right to possess property, whether tangible or intangible, and exercise control over it.

Valuation Allowance

A reserve created against the deferred tax asset due to uncertainty concerning its realization.