Case 3 Matthew Has His New Computer System in Place

question 31

Multiple Choice

Case 3 Matthew has his new computer system in place and is ready to have an Internet connection. He is overwhelmed by the variety of choices for home Internet connections. For instance, he could choose to connect using an existing telephone line or dial-up connection. He could also use a cable modem, ISDN (Integrated Services Digital Network) , DSL (Digital Subscriber Line) , or satellite Internet service. Which of the Internet connections is always-on and does not require proximity to a telephone switching station?

• A) cable modem
• B) dial-up
• C) DSL (Digital Subscriber Line)
• D) ISDN (Integrated Services Digital Network)

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Definitions:

Cash Operating Expenses

Expenses incurred during the operational activities of a business that affect cash flow, such as paying salaries and purchasing materials.

Simple Rate Of Return

A financial ratio used to calculate the profit an investment will generate, expressed as a percentage of the initial cost.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value after accounting for the effects of taxes.

Working Capital

The difference between a company's current assets and current liabilities, indicating its liquidity and operational efficiency.