A Computer Operating System Software Manufacturer Invests Its Profits in Creating

question 66

True/False

A computer operating system software manufacturer invests its profits in creating newer versions of its operating system software to make best use of the continuous changes in computer hardware.This is called diversification.

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Definitions:

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, expressed as a percentage of the investment's net profit to its cost.

Investment Opportunity

An option to invest capital with the expectation of generating a return, including stocks, bonds, real estate, or business ventures.

Required Rate of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Operations

The day-to-day activities required for the business to function, including production, sales, and administration.