CAS-003 Question #772: Real Exam Question with Answer & Explanation

The correct answer is B: Software Escrow. Software Escrow is an arrangement where the source code of a software application is deposited with a neutral third-party escrow agent. Jim's company (the software acquirer/client) is protected because if Chris's company (the developer) becomes unable to support the software - du

Question

Jim's company hires Chris's company in order to develop software. However, a 3rd party has a source code copy. What should be in place by Jim's company for protection?

Options

AFinancial Escrow
BSoftware Escrow
CTechnical Escrow
DApplication Escrow

Explanation

Software Escrow is an arrangement where the source code of a software application is deposited with a neutral third-party escrow agent. Jim's company (the software acquirer/client) is protected because if Chris's company (the developer) becomes unable to support the software - due to bankruptcy, acquisition, or breach of contract - Jim's company can obtain the source code from escrow to maintain or further develop the application. This is exactly the scenario described: a third party holds a copy of the source code as protection for Jim's company. Financial Escrow (A) holds money, not code. Technical Escrow (C) and Application Escrow (D) are not recognized standard industry terms in this context.

Community Discussion

No community discussion yet for this question.

Full CAS-003 Practice