Question

You decide to open a business and purchase Office 365 for your laptop. Microsoft requires you to pay a yearly fee to use their software. Which answer best describes this type of licensing?

Subscription

Open source

Recurring

Single use

Answer 1

The type of licensing required by Microsoft when you pay a yearly fee for Office 365 is a subscription model, which is an ongoing and not a single-use or open-source license.

Step-by-step explanation:

The type of licensing described in the question is known as a subscription model. When you pay a yearly fee to use Microsoft Office 365 for your laptop, you are subscribing to their services. This means you are paying regularly to have access to the software and its updates for as long as your subscription is active. Unlike a single-use license where you pay once to own the software indefinitely, a subscription requires ongoing payments. It is not open source because Microsoft does not provide the source code for public modification and it's not a one-time purchase or single use. Lastly, while 'recurring' can describe the payment nature, the proper term used in licensing is subscription.