Your Company Buys a Computer Server,which It Expects to Use

question 25

Multiple Choice

Your company buys a computer server,which it expects to use for eight years and then sell when it upgrades to a more powerful model.The server would probably be used by the business that buys it at that time for another three years.The useful life of the server for your company is:

• A)the total length of time the server is used to produce output for your company.
• B)eleven years.
• C)the total length of time until the server can no longer function.
• D)three years.

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Definitions:

Depression

A prolonged period of significant decline in economic activity and employment, more severe than a recession, marked by long-term unemployment and financial distress.

Stock Prices

Stock prices represent the current market value of a share of a company's stock, determined by the supply and demand for that stock in the marketplace and reflecting investor perceptions of the company's future prospects.

Unemployment

The condition of being jobless and actively seeking work, often measured as a percentage of the labor force and used as an indicator of economic health.

Sustained Growth

A consistent increase in the size of an economy over a period, typically characterized by steady growth rates.