Commercial Off-The-Shelf Software (COTS) Has Both Advantages and Limitations for Businesses

question 7

Multiple Choice

Commercial off-the-shelf software (COTS) has both advantages and limitations for businesses. What is true about COTS?

• A) COTS supports continuous development with its fast implementation
• B) COTS will save the business time and money, by reducing development time
• C) Depending on the type of COTS used, the possibility of customization is limited

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Definitions:

Stock Investment

The purchase of shares in a company with the expectation of earning a return through dividends, share price growth, or both.

Available-for-Sale Debt Securities

Debt investments not classified as held-to-maturity or trading securities, recorded at fair value on the balance sheet with unrealized gains or losses reported in other comprehensive income.

Fair Value

An estimate of the market price of an asset or liability, reflecting the value for which it could be bought or sold in a current transaction between willing parties.

Fair Value Adjustment

A financial accounting process of adjusting the book value of an asset or liability to reflect its current market value.