Case-Based Critical Thinking Questions Case 3-2 Tom Owns a Small

question 83

Multiple Choice

Case-Based Critical Thinking Questions Case 3-2 Tom owns a small company and is purchasing a software license for his company. He originally had to purchase a copy of each piece of software for each of his employees. However, one of his friends told him there were other types of license agreements. Tom has come to you and asked for help in deciding what kind of license is right for his company. Five of the people in Tom's company use a web design software. You advise Tom to get a license for a specific number of users. He needs a ____ license.

• A) site
• B) multiple user
• C) concurrent user
• D) single

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a predetermined period.

Conversion Ratio

The number of shares a bondholder can receive upon converting their bonds into equity shares.

Call Option

A finance-related contract granting the buyer the privilege, rather than a requirement, to buy an asset at a fixed price within a set period.