Why Do Makers of Computer Programs Usually "License" the Program

question 14

Essay

Why do makers of computer programs usually "license" the program to you rather than "sell" it?

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies, where the investment is recorded at original cost and adjusted for the investor's share of the investee's profit or loss.

Outstanding Voting Stock

The shares of a corporation that are issued, held by shareholders, and entitled to vote in corporate decisions.

Affiliate Dividends

Affiliate dividends refer to the distribution of earnings paid to shareholders of a subsidiary or an affiliate company.

Outstanding Shares

The total number of shares of a corporation that have been issued and are currently held by investors, including public shareholders and company officers.