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

question 81

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. Tom will be the only person using the license, so he needs a ____ license.

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

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Definitions:

Reinvestment

The process of using dividends, interest, or any form of return earnings to purchase additional shares or units instead of receiving the earnings in cash.

Compound Interest

This refers to the interest that is calculated on both the original principal amount and on the interest that has previously been added to that principal in past periods.

Initial Principal

The original sum of money borrowed in a loan or invested, before any interest or profit is added.

Reinvested

The act of using dividends, interest, or any form of returns to purchase additional shares or assets rather than taking cash.