CAS-002 Question #316: Real Exam Question with Answer & Explanation

The correct answer is B: Software Escrow. If a company pays another company to develop software for it, it should have software escrow in place for protection. In software escrow, a third party keeps a copy of the source codes and other material, which it will release to the customer only if specific circumstances arise,

Question

Jim's company is paying Chris's company to develop software and a third party keeps a copy of the source code. What should Jim have in place for protection?

Options

AFinancial Escrow
BSoftware Escrow
CApplication Escrow
DTechnical Escrow

Explanation

If a company pays another company to develop software for it, it should have software escrow in place for protection. In software escrow, a third party keeps a copy of the source codes and other material, which it will release to the customer only if specific circumstances arise, mainly if the vendor who developed the code goes out of business or for some reason is not meeting its obligations and responsibilities. The procedure protects the customer because the customer pays the vendor to develop software code for it and if the vendor goes out of business.

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