UGC-NET | UGC NET CS 2015 Dec – III | Question 48

As compared to rental and leasing methods to acquire computer systems for a Management Information System (MIS), purchase method has following advantage:

(A)

It has high level of flexibility

(B)

It doesn’t require cash up-front

(C)

It is a business investment

(D)

Little risk of obsolescence

Answer: (C)
Explanation:

As compared to rental and leasing methods to acquire computer systems for a Management Information System (MIS), purchase method has following advantage it is a business investment. Other Advantages of renting and leasing:

• No capital is tied up
• No financing is required

Disadvantages:

• Expensive
• Company doesn\’t own the system when the agreement

So, option (C) is correct.

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