The Most Expensive Approach to Final Systems Testing Is

question 13

Multiple Choice

The most expensive approach to final systems testing is

• A) parallel operation.
• B) modular conversion.
• C) the direct approach.
• D) the file conversion approach.

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Definitions:

Stock Repurchase

An action taken by a corporation to repurchase its own shares from the market, thereby decreasing the total number of shares available.

Residual Dividend Policy

A financial strategy where dividends paid to shareholders are based on the earnings left after all operational and capital expenses, as well as growth investments, have been covered.

Target Capital Structure

The mix of debt, preferred stock, and common equity that a company aims to hold to minimize its cost of capital and maximize its market value.

Forecasted Net Income

Forecasted net income is an estimate of a company's future profits after all expenses and taxes have been subtracted from revenues.