Zapper Products Corp

question 12

Multiple Choice

Zapper Products Corp., a system integration services company, provides a pay-per-use option for its business customers that allows them to understand its product's capabilities before they order licensed versions on a large scale.This option has made Zapper Products Corp.extremely popular with smaller firms that plan to invest on information technology infrastructure but have limited funds.The factor that is contributing to the success of Techno Products Corp.is:

• A)compatibility.
• B)complexity.
• C)relative advantage.
• D)observability.
• E)trialability.

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Definitions:

Convertible Bonds

Bonds that can be converted into a predetermined number of a company’s shares at certain times during their life, usually at the discretion of the bondholder.

Diluted Earnings Per Share

A metric that calculates the quality of earnings per share (EPS) if all convertible securities were converted into common stock, indicating the potential dilution that could occur.

Diluted EPS

Earnings per share calculated under the assumption that all convertible securities and options have been converted into additional shares, potentially lowering the EPS.

Stock Options

Contracts that give the holder the right, but not the obligation, to buy or sell a stock at a specific price before a certain date.