A Company Purchased a Software Program

question 330

Multiple Choice

A company purchased a software program. The EULA states that the software can be installed on as many computers as the company wants, but only four users can be using the software at any point in time. Which of the following types of license is this an example of?

• A) Group license
• B) Concurrent license
• C) Subscription license
• D) Open-source license

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Definitions:

Gross Profit

The difference between total revenue and the cost of goods sold, representing the profitability of a company's core activities before overhead.

Operating Expenses

The costs associated with the day-to-day operations of a business, excluding the cost of goods sold.

Current Asset

An asset that is expected to be converted into cash or used up within one year or within the business's normal operating cycle.

Normal Operating Cycle

The average time period between when a company purchases raw materials for production and when it receives cash from selling the finished goods.