Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
11th Edition
ISBN: 9781305494602
Author: Scott Tilley, Harry J. Rosenblatt
Publisher: Cengage Learning
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Chapter TPC, Problem 1DT
Program Plan Intro
Ethical questions on raising benefit figures for IT proposals and the outcomes of this measure.
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Suppose your supervisor asks you to inflate the benefit figures for an IT proposal in order to raise the priority of his or her favorite project. Would this be ethical? Does internal cost-benefit analysis affect company shareholders? Why or why not?
The board of directors of a company decides that senior management has to be rewarded in order to achieve the company's objectives. The board of directors selects whether or not to award bonuses based on growth in share value at the end of each fiscal year. Bonuses will be given in shares, which the managers can keep or sell on the open market. What are the ramifications of implementing a bonus system like this?
A company's board thinks it needs to reward top management for advancing the company's aims. The board decides on incentives based on share price rises at the end of each year. Bonuses will be given in shares that managers may keep or sell. What are the ramifications of such a bonus scheme?
Chapter TPC Solutions
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
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- A purpose of Commitment Scale is to to list actions that can improve Stakeholder interest. True/Falsearrow_forwardPerform a financial analysis for an IT Project which requires an initial investment of $32,000, but it is expected to generate revenues of $10,000, $20,000 and $15,000 for the first, second and third years respectively. The target rate of return is 12%. Write the formula and calculate the Net Present Value (NPV). In addition, Justify your result. (For this question Write the answer on the paper and take photo and upload OR Type in the MS Word document and upload the file) Attach File Browse My Computerarrow_forwardAssume your boss requests you to in flate the benefit statistics for an IT proposal to boost a favorite project's priority. Is this ethical? Shareholders are affected by internal cost-benefit analyses. So, why?arrow_forward
- The board of directors of an organization determines that it is necessary to create incentives for senior management to advance the organization's aims. The board of directors determines whether to award bonuses based on growth in share value at the conclusion of each fiscal year. Bonuses are to be given in shares that managers may hold or sell on the open market. What are the consequences of implementing such a bonus system?arrow_forwardThere's an opinion that the board should compensate senior management for helping the firm achieve its goals. It is up to the board of directors to decide on annual incentives depending on the company's share price. Rather than cash, managers will get bonuses in the form of stock, which they may either retain or sell. What are the long-term consequences of this bonus programme?arrow_forwardThe board of directors of an organization determines that it is necessary to create incentives for senior management to advance the organization's aims. The board of directors determines whether to award bonuses based on growth in share value at the end of each fiscal year. Bonuses are to be paid in shares that managers may hold or sell on the open market. What are the consequences of implementing such a bonus system?arrow_forward
- An organisation's board decides that it needs to provide incentives for senior management to further the organisation's goals. The board decides to provide bonuses based on increases in share value, measured at the end of each financial year. Bonuses are to be paid in shares which can be held by the managers or sold on the market. What are the implications of introducing such a bonus system?arrow_forwardGiven the following information for a one-year IT project of Gulf Hospital System, answer the following questions. Recall that PV is the planned value, EV is the earned value, and AC is the actual cost. PV = $ 32,000 EV = $ 25,000 AC = $ 36,000 Calculate the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the given project. Justify the results.arrow_forwardThe bid process includes defining and documenting functional requirements. Discuss why, even if a bid is not necessary, this might be useful in the selection of an ERP system,arrow_forward
- Suppose your boss wants you to overstate IT proposal benefits to boost his or her favored project. Ethics? Internal cost-benefit analysis affects shareholders? Why?arrow_forwardWhat is an algorithmic cost model? When compared to other cost estimating methods, what drawbacks does it have?arrow_forwardA company's board of directors thinks senior management should be compensated for attaining the organization's goals. The board decides on incentive payouts based on share price increase at the end of each year. Bonuses for managers will come in the form of shares, which they may either keep or sell. What effects does this kind of incentive program have?arrow_forward
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