Dreyfuss WebMakers Company Developed a Template for a Web Page

question 21

Multiple Choice

Dreyfuss WebMakers Company developed a template for a web page that included a shopping cart and other capabilities to market its software.However,Dreyfuss soon realized it could make more money by selling this template in modules to others wishing to quickly build web pages to sell their products.Dreyfuss should

• A) forget about this idea because it will just be creating its own competition on the Internet.
• B) become a licensor of web page template modules.
• C) become a licensee of web page template modules.
• D) start a joint venture with any other company wishing to use its template.

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Definitions:

Preferred Share Issue

The process of offering preferred shares to investors, which are stock shares that have priority over common shares in dividend payments and asset liquidation, but usually do not have voting rights.

Consolidated Balance Sheet

A financial statement that shows the aggregate financial position of a parent company and its subsidiaries as if they were a single entity.

Common Shares

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Consolidated Statement

Financial statements that aggregate the assets, liabilities, and operations of a parent company and its subsidiaries.