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In One Form of Outsourcing, a Company Creates the Software

question 73

True/False

In one form of outsourcing, a company creates the software for its system, but operates the software on a vendor's computers.


Definitions:

Present Value

The calculated worth today of a future monetary sum or repetitive cash flows, utilizing a predetermined return rate.

Semiannual Interest

Interest that is calculated and paid twice a year, often used in bond and loan agreements.

Discount on Bonds Payable

The difference by which the bond's face value exceeds its selling price, reducing the cost to the issuer.

Straight-Line Method

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

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