Is it possible with the correct licensing and in a business enviroment to install MS office on a server which the the clients on the business's network can access?
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You will need one license of Microsoft Word for each desktop device that will access it and use it from the Terminal Server.
So you can't get just one license and share it via Terminal Services. While that's technically possible, it's legally a violation of the terms of the license. Below are some supporting references.
From the Microsoft SMB (small & medium business) blog.
From Microsoft TechNet:
It's definitely possible yes. Terminal services would be the technical solution.
But concerning the licencing, I still think you need an individual office licence for each individual user that's accessing the server and using office on it.
For more details see this article.