Switching from the Use of a Present System to the Operation

question 43

Multiple Choice

Switching from the use of a present system to the operation of a new or improved system is a(n) _______________ activity.

• A) acquisition
• B) software development
• C) documentation
• D) conversion

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Definitions:

Futures Contract

A binding contract to trade a certain commodity or financial asset at a fixed price, with the transaction set to occur on a specified date in the future.

Debt Securities

Financial instruments representing money borrowed that must be repaid, with terms defining the interest rate and maturity date.

Equity Securities

Financial instruments that represent ownership in a company, such as stocks, granting holders a claim on the company's assets and earnings.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and other investments.