Final answer:
The term for the person or group providing funding for the development of a new system is generally known as the 'client'. The correct answer is option 2.
Step-by-step explanation:
The person or group that provides funding for the development of a new system is known as the client. This is in a general sense where the client initiates and funds the project. However, in the corporate structure and governance, the board of directors, elected by shareholders, is seen as a key body in the oversight of a company's operations, which may include the funding of new initiatives. Additionally, outside investors, such as those managing large mutual funds or pension funds, play a role in corporate governance by providing the capital needed for such ventures.
In relation to the question, while an oversight committee might have a role in monitoring the development of a new system, and a department head could be responsible for its oversight within the company, they are typically not the sources of funding.
A board of directors could authorize the investment based on proposals and strategies presented by the management, but the actual term that would generically cover any funding entity is client. Hence, for the development of a new system, the correct option would be the client (option 2).