The Risk of Losing a Fundamental Understanding of a Company's

question 50

Multiple Choice

The risk of losing a fundamental understanding of a company's AIS needs and the strategic users of an AIS as a result of outsourcing is referred to as

• A)focus reduction.
• B)loss of control.
• C)reduced competitive advantage.
• D)unfulfilled goals.

---

Definitions:

Common Shares

Common Shares represent ownership interests in a corporation, granting holders voting rights and a share in the company's profits through dividends and capital appreciation.

Broker

A person or entity that acts as an intermediary in financial transactions, connecting buyers and sellers for a commission.

Primary Market Transaction

Financial transactions that occur when securities are issued for the first time, such as an initial public offering (IPO).

Direct Transfer

The movement of assets or funds from one type of account or investment vehicle directly to another without taking possession, often seen in IRA or 401(k) rollovers.