Consider the Following Short Case as You Respond to the Question

question 1

Multiple Choice

Consider the following short case as you respond to the question: Scott and Logan are the CEO and CFO of MLN Corporation.The firm has lately been losing customers to MLN's competitors; Scott and Logan believe an ERP system could help MLN obtain more timely information that will enable them to retain old customers and acquire new ones.They formed a six-person team with representatives from three of MLN's ten departments and instructed them to use the steps in the systems development life cycle to choose and implement an ERP system.A year later, the team had completed its work and implemented the system by transferring data from MLN's general ledger software to the ERP system.Umble and Umble suggested six necessary conditions for a successful ERP implementation.Which of the following statements is most true?

• A)Forming a six-person team ensures that ERP will be seen as an enterprise-wide venture.
• B)Resolving multi-site issues may not have been an issue for MLN.
• C)Both forming a six-person team ensures that ERP will be seen as an enterprise-wide venture and resolving multi-site issues may not have been an issue for MLN are true.
• D)Neither forming a six-person team ensures that ERP will be seen as an enterprise-wide venture nor resolving multi-site issues may not have been an issue for MLN is true.

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Definitions:

Return On Investment

A profitability measure that calculates the return of an investment relative to its cost.

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit.

Residual Income

The income that remains after all personal debts and expenses have been paid, or in business, after all capital costs are deducted from net revenues.

Internal Centralized Service Department

A department within an organization that provides essential services or support centrally to other departments, often aiming to increase efficiency and standardization.