Answer: D) not been recorded and unearned revenues have.
Explanation:
Accrued revenue is a term used to describe a sale that has been recognized by the seller, but which has not yet been billed to the customer. Accrued revenue is needed in order to match revenues with expenses. The absence of accrued revenue would tend to show excessively low initial revenue levels and low profits for a business, which does not properly indicate the true value of the organization.
Unearned revenue on the other hand is the money received from a customer for work that has not yet been performed (in advance payment). This is an advantage to the seller who now has the cash to perform the required services. Unearned revenue is a liability for the recipient of the payment.
Answer:
1. "lack of documentation in the implementation project."
2. "resistance from end users for IS implementation."
Explanation:
Some of the general challenges of implementing change are:
1. Lack of Proper Planning.
2. Low Employee Morale.
3. Lack of Consensus.
4. Adopting New Technology.
5. Failing to Communicate.
6. Resistance
However from the scenario, we see two major challenges of IS implementation which also agrees with the general challenges of change management and implementation.
1. Lack of documentation in the implementation project: The issue of lack of documentation during implementation is in relation to 'lack of proper planning' because such documentation will be invaluable when it comes to training the staff about the change that has been implemented. Lack of implementation documentation will also lead to inability to communicate the progress of the implementation to Staff. In summary implementation documentation are necessary for understanding whatever change(s) will happen as a result of such project.
2. Resistance from end users for IS implementation: This is not a problem peculiar to this scenario but as can be seen from the general problems of implementing organisational change, 'resistance' is a problem.
Such resistance is caused by other factors like 'lack of communication' and 'lack of consensus'. Employees always do resist change because they are already used to the old way of doing things and possibly were not part of the decision to implement an IS.
These challenges can be addressed by staff engagement, staff training on the change and effective communication.
Answer: A. The company has strong competitive position in its industry and industry growth is sluggish.
Explanation: Diversification is best done from a position of strength, a company should be doing well in its current industry and market before considering diversifying. A company having strong competitive position in its industry and when there is a sluggish growth in that industry, the company can diversified.
Diversification in corporate is a strategy that a company implement to increase market shares and sale volume by introducing new product in another industry and market different from the one they are operating.
