When You Purchase Copyrighted Software, What Actually Are You Paying

question 20

Multiple Choice

When you purchase copyrighted software, what actually are you paying for?

• A) The cost of the CDs
• B) The cost of the CDs, manuals, and the cost of the software development
• C) A share of the cost of software development
• D) The right to use it

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Definitions:

Capital Leases

Leasing arrangements that are considered to possess the economic characteristics of asset ownership, typically leading to the lease asset being recorded on the balance sheet.

Capital Lease

A lease agreement that transfers substantially all the risks and rewards of ownership of an asset to the lessee, effectively treated as an asset purchase for accounting purposes.

Lessee

An individual or entity that leases or rents property or equipment from another entity, known as the lessor.

Lessor

A party that leases an asset to another party, known as the lessee, for periodic payments.