A Company Purchases a New Computer System for the Purpose

question 167

Multiple Choice

A company purchases a new computer system for the purpose of streamlining the processing of customer orders.The company's objective is to decrease processing time so that 98% of all orders are shipped within 24 hours of being received.After operating with the new system for three months,the company was shipping 92% of all orders within 24 hours.This situation is an example of a __________.

• A)Performance opportunity.
• B)Ethical situation.
• C)Performance deficiency.
• D)Work process weakness.
• E)Planning weakness.

---

Definitions:

Voting Rights

The entitlement of shareholders or members of an organization to vote on important matters, such as the election of the board of directors.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as shareholders' equity.

Stock Dividend

A dividend payment made by a company to its shareholders in the form of additional shares, rather than cash.

Market Value

The present cost at which a product or service is available for purchase or sale in the marketplace.