The Computers of Main Frame Inc

question 52

Multiple Choice

The computers of Main Frame Inc., a computer company, are manufactured with in-built operating software. The users of this software have avoided using computers manufactured by other companies because that would entail converting their data to the other software. Also, they would have to get used to working smoothly with the other software. From this scenario, we can infer that ________.

• A)the users of Main Frame Inc. have increased power.
• B)the switching cost would be higher for the users of Main Frame Inc.
• C)the users of Main Frame Inc. have increased industry rivalry tremendously.
• D)it is easy for competitors to poach users of Main Frame Inc.

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Definitions:

Accumulated Depreciation

The aggregate sum of depreciation costs accounted for a fixed asset since its inception of use.

Equipment Account

A financial account that tracks the acquisition cost and depreciation of a company's equipment.

Ordinary Repairs

Routine maintenance and repair costs that are expensed in the period incurred to keep an asset in its normal operating condition.

Physically Extracted

The process of removing materials or resources from the natural environment through manual or mechanical means.