Parallel Conversion Is Less Risky Than Direct Conversion Because It

question 25

True/False

Parallel conversion is less risky than direct conversion because it has a greater chance of detecting bugs that have gone undiscovered in testing; pilot conversion is less risky than either phased or simultaneous conversion because if bugs do occur, they occur in only pilot test locations.

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Economic Rent

It is the payment to an owner or factor of production in excess of the costs needed to bring that factor into production. In other words, it's the extra income earned from a resource without investing in additional effort or cost.

Net Productivity

The actual output after subtracting the inputs used in the production process, indicating the efficiency of production.

Capitalization

The total market value of a company's outstanding shares, representing the investment community's perception of its worth.