Which of the Following Is True of Software as a Service

question 32

Multiple Choice

Which of the following is true of software as a service (SaaS) ?

• A) Firms spend more using SaaS.
• B) It refers to software that is made available by a third-party online.
• C) Due to US and European legal requirements, there are no accounting and corporate finance implications for SaaS in these regions.
• D) Saas firms face diseconomies of scale.
• E) SaaS vendors are less attuned to customer needs.

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Definitions:

Noncontrolling Interest

A portion of the equity in a subsidiary not owned by the parent company, representing minority shareholders' interest in the subsidiary's net assets.

Intra-entity Transactions

Transactions that occur between two parts of the same company, often used in the context of consolidating financial statements.

Voting Common Stock

Shares that give the holder the right to vote on company matters, such as elections for the board of directors.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single entity.