Ompanies Must Ask Themselves Many Questions Before Implementing an RFID

question 19

Multiple Choice

ompanies must ask themselves many questions before implementing an RFID system. Some such questions follow, with one exception. Which is the exception?

• A) Does the company need RFID to keep pace with its competitors?
• B) Will RFID offer a competitive advantage for the company?
• C) Will the company have the power to manage its business without accurate information about its processes and inventory that could be gained from RFID?
• D) Will RFID increase the costs of the company to serve its customers?
• E) Will RFID save the company money eventually (long term)?

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Definitions:

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright.

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as electing directors and approving company policies.

Purchase

The act of acquiring goods or services in exchange for money, signifying a transaction between two parties.

Share Issue

The process by which a company distributes its shares to investors, thereby raising capital.