Your Company Is Accepting Proposals from a Variety of Consulting

question 159

Multiple Choice

Your company is accepting proposals from a variety of consulting firms to assist in determining how the rapid changes in technology will impact your firm's future operations and profitability.
Which one of the following consulting firm proposals should you accept?

• A) Accept Firm A's proposal to complete a technology evaluation.
• B) Accept Firm B's proposal to complete a SWOT analysis.
• C) Accept Firm C's proposal to implement an information technology change management process.
• D) Accept Firm D's proposal to complete a technology assessment.
• E) None of the proposals should be accepted.

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Definitions:

Cash Flow Hedge

A financial strategy used to manage risks associated with fluctuations in cash flows by using a hedge instrument to offset potential losses or gains.

Spot Exchange Rates

The present rate at which one currency is traded for another with immediate effect.

Net Income

The overall earnings of a firm once expenses and taxes are subtracted from its total revenue.

Cash Flow Hedge

A financial strategy used to manage the risk of fluctuations in cash flows caused by changes in foreign exchange rates, interest rates, or commodity prices.