Companies that have successfully installed enterprise systems are found to follow a basic set of recommendations related to enterprise system implementations
Indicate whether the statement is true or false
TRUE
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When a partner withdraws from the partnership by selling his or her interest back to the partnership, the remaining partners must pay the withdrawing partner a specified amount from their personal assets
a. True b. False Indicate whether the statement is true or false
________ represents the net marketing contribution as a percentage of sales
A) Return on equity B) Marketing ROS C) Gross profit D) Marketing ROI E) Market demand
Which of the following statements is CORRECT?
A. Sensitivity analysis as it is generally employed is incomplete in that it fails to consider the probability of occurrence of the key input variables. B. In comparing two projects using sensitivity analysis, the one with the steeper lines would be considered less risky, because a small error in estimating a variable such as unit sales would produce only a small error in the project's NPV. C. The primary advantage of simulation analysis over scenario analysis is that scenario analysis requires a relatively powerful computer, coupled with an efficient financial planning software package, whereas simulation analysis can be done efficiently using a PC with a spreadsheet program or even with just a calculator. D. Sensitivity analysis is a type of risk analysis that considers both the sensitivity of NPV to changes in key input variables and the probability of occurrence of these variables' values. E. As computer technology advances, simulation analysis becomes increasingly obsolete and thus less likely to be used than sensitivity analysis.
The first step involved in predicting financing needs is
A) forecasting the firm's sales revenues and expenses over the planning period. B) determining the firm's financing needs throughout the planning period. C) estimating the levels of investment in current and fixed assets that are necessary to support the projected sales. D) estimating the cost of debt.