Microsoft Holds Patents on Windows, but Another Source of Its

question 102

Multiple Choice

Microsoft holds patents on Windows, but another source of its monopoly power identified in the book is:

• A) the network effects associated with the standards set by Windows.
• B) its willingness to use catalog sales as its primary form of retail sales.
• C) its exclusive franchise from the government.
• D) its restricted ownership of silica, the principle ingredient in manufacturing computer chips.

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Definitions:

Adjusting Entries

Bookkeeping records created at the closure of an accounting cycle to distribute revenues and expenses to the timeframe in which they were genuinely incurred.

Onscreen Journal

A digital ledger within accounting software that displays financial transactions in chronological order.

Depreciation

The method of allocating the cost of a tangible asset over its useful life.

Fixed Assets

Long-term tangible assets that are expected to be used in the operation of a business for a length of time, typically over one year.