Question 1

_____ is a term that refers to a closed network or single set of services controlled by one dominant firm.

Accepted Answer

A)  Walled garden 
B)  Cloud 
C)  Network effects 
D)  Free rider problem 
E)  Localization 
A)  Walled garden 
B)  Cloud 
C)  Network effects 
D)  Free rider problem 
E)  Localization

Question 2

A firm's stock price is supposed to reflect the _____ value of a firm's future earnings.

Accepted Answer

A)  net present 
B)  fair 
C)  residual 
D)  relative 
E)  intrinsic 
A)  net present 
B)  fair 
C)  residual 
D)  relative 
E)  intrinsic

Question 3

What are the various areas of concern for Facebook?

Accepted Answer

Facebook's stock plummeted following its

Question 4

Which of the following factors prevents social networking sites from monetizing advertising effectively?

Accepted Answer

A)  Low marketing budgets 
B)  Inflation 
C)  DNS cache poisoning 
D)  Phishing 
E)  Content adjacency 
A)  Low marketing budgets 
B)  Inflation 
C)  DNS cache poisoning 
D)  Phishing 
E)  Content adjacency

Question 5

How has Facebook been able to gain a share in the photo-sharing and video-sharing markets at the expense of established firms?

Accepted Answer

Facebook is gradually turning on feature

Question 6

When a firm issues an IPO, it is said to have:

Accepted Answer

A)  been liquidated due to short selling. 
B)  gone public. 
C)  received government funding. 
D)  been liquidated due to switching costs. 
E)  issued a dividend. 
A)  been liquidated due to short selling. 
B)  gone public. 
C)  received government funding. 
D)  been liquidated due to switching costs. 
E)  issued a dividend.

Question 7

Third-party Web sites can choose to accept a user's Facebook credentials to allow the user to access their content.

Accepted Answer

A) True 
 B)False

Question 8

Several metrics suggest that Facebook may have been overvalued at IPO.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an area of concern for Facebook?

Accepted Answer

A)  Increasing infrastructure costs 
B)  Higher ARPU than rivals 
C)  High ROI of Facebook advertising 
D)  Valuation at IPO 
E)  High switching costs 
A)  Increasing infrastructure costs 
B)  Higher ARPU than rivals 
C)  High ROI of Facebook advertising 
D)  Valuation at IPO 
E)  High switching costs

Question 10

Facebook was one of the first social networking sites where users actually identified themselves using their real names.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following factors suggests that Facebook can offer Google greater competition in the search engine market?

Accepted Answer

A)  Facebook's $100 billion valuation, owing to its going public 
B)  Much of Facebook's content being inaccessible to standard search engines 
C)  Facebook's banner ad model which generates more revenue through targeting than any other Web site 
D)  Facebook's tie-up with Microsoft's Bing to offer Web search results 
E)  The greater volume of user data that Facebook has access to, which can potentially offer better search capabilities than Google's search algorithm 
A)  Facebook's $100 billion valuation, owing to its going public 
B)  Much of Facebook's content being inaccessible to standard search engines 
C)  Facebook's banner ad model which generates more revenue through targeting than any other Web site 
D)  Facebook's tie-up with Microsoft's Bing to offer Web search results 
E)  The greater volume of user data that Facebook has access to, which can potentially offer better search capabilities than Google's search algorithm

Question 12

Brand advertisers largely consider user-generated content as low-quality, brand-unsafe inventory for running advertisements. This can be attributed to:

Accepted Answer

A)  content adjacency. 
B)  audience matching. 
C)  collaborative filtering. 
D)  search engine marketing. 
E)  negative keyword usage. 
A)  content adjacency. 
B)  audience matching. 
C)  collaborative filtering. 
D)  search engine marketing. 
E)  negative keyword usage.

Question 13

Facebook's Beacon effort was a failure because it was "opt-out" instead of "opt-in."

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements holds true for the term "free rider problem"?

Accepted Answer

A)  It refers to a collection of resources available for access over the Internet. 
B)  It refers to adapting products and services for different languages and regional differences. 
C)  It refers to a situation when the value of a product or a service increases as the number of its users expands. 
D)  It refers to a situation when others take advantage of a user or a service without providing any sort of reciprocal benefit. 
E)  It refers to a closed network or a single set of services controlled by one dominant firm. 
A)  It refers to a collection of resources available for access over the Internet. 
B)  It refers to adapting products and services for different languages and regional differences. 
C)  It refers to a situation when the value of a product or a service increases as the number of its users expands. 
D)  It refers to a situation when others take advantage of a user or a service without providing any sort of reciprocal benefit. 
E)  It refers to a closed network or a single set of services controlled by one dominant firm.

Question 15

_____ is considered to be the most persuasive and valuable method of promoting products and services.

Accepted Answer

A)  Online advertising 
B)  Vertical integration 
C)  Sugging 
D)  Word of mouth 
E)  Search marketing 
A)  Online advertising 
B)  Vertical integration 
C)  Sugging 
D)  Word of mouth 
E)  Search marketing

Question 16

Most Facebook applications are focused on:

Accepted Answer

A)  education. 
B)  business. 
C)  entertainment. 
D)  arts and science. 
E)  information. 
A)  education. 
B)  business. 
C)  entertainment. 
D)  arts and science. 
E)  information.

Question 17

Which of the following is true about advertising and Facebook?

Accepted Answer

A)  Facebook sells banner advertisements to the online community. 
B)  Google serves three times more display ads online than Facebook. 
C)  Facebook ads do not engage consumers to comment on content or RSVP to an event. 
D)  Facebook executives argue that people remember ads better and are more likely to make purchases when their friends endorse products. 
E)  Facebook users can endorse products by clicking on the "like" button, but they cannot turn off firm messages if they "unlike" a firm. 
A)  Facebook sells banner advertisements to the online community. 
B)  Google serves three times more display ads online than Facebook. 
C)  Facebook ads do not engage consumers to comment on content or RSVP to an event. 
D)  Facebook executives argue that people remember ads better and are more likely to make purchases when their friends endorse products. 
E)  Facebook users can endorse products by clicking on the "like" button, but they cannot turn off firm messages if they "unlike" a firm.

Question 18

What are the hurdles encountered by Facebook in advertising? Compare Facebook's ad model with other successful online advertising firms.

Accepted Answer

Problems associated with advertising on

Question 19

Which of the following is a strategy adopted by Facebook?

Accepted Answer

A)  Facebook's "no-beta" culture does not tolerate gaffes. 
B)  Facebook avoids the reinforcement of negative perceptions regarding the firm's attitudes toward users, notifications, and their privacy. 
C)  Facebook considers word of mouth the least effective method for promoting products and services such as Beacon. 
D)  Facebook avoids initiatives and policy changes that raise public and governmental concern. 
E)  Facebook encourages developers to release innovations before they are perfect. 
A)  Facebook's "no-beta" culture does not tolerate gaffes. 
B)  Facebook avoids the reinforcement of negative perceptions regarding the firm's attitudes toward users, notifications, and their privacy. 
C)  Facebook considers word of mouth the least effective method for promoting products and services such as Beacon. 
D)  Facebook avoids initiatives and policy changes that raise public and governmental concern. 
E)  Facebook encourages developers to release innovations before they are perfect.

Question 20

CPM refers to:

Accepted Answer

A)  each instance of an advertisement being viewed by a user. 
B)  cost per thousand impressions. 
C)  a concept where advertisers do not pay unless someone clicks on their ad. 
D)  the maximum amount of money advertisers are willing to pay for each click on their ads. 
E)  the number of users who clicked an ad divided by the number of times the ad was delivered. 
A)  each instance of an advertisement being viewed by a user. 
B)  cost per thousand impressions. 
C)  a concept where advertisers do not pay unless someone clicks on their ad. 
D)  the maximum amount of money advertisers are willing to pay for each click on their ads. 
E)  the number of users who clicked an ad divided by the number of times the ad was delivered.

_____ is a term that refers to a closed network or single set of services controlled by one dominant firm.

A firm's stock price is supposed to reflect the _____ value of a firm's future earnings.

What are the various areas of concern for Facebook?

Which of the following factors prevents social networking sites from monetizing advertising effectively?

How has Facebook been able to gain a share in the photo-sharing and video-sharing markets at the expense of established firms?

When a firm issues an IPO, it is said to have:

Third-party Web sites can choose to accept a user's Facebook credentials to allow the user to access their content.

Several metrics suggest that Facebook may have been overvalued at IPO.

Which of the following is an area of concern for Facebook?

Facebook was one of the first social networking sites where users actually identified themselves using their real names.

Which of the following factors suggests that Facebook can offer Google greater competition in the search engine market?

Brand advertisers largely consider user-generated content as low-quality, brand-unsafe inventory for running advertisements. This can be attributed to:

Facebook's Beacon effort was a failure because it was "opt-out" instead of "opt-in."

Which of the following statements holds true for the term "free rider problem"?

_____ is considered to be the most persuasive and valuable method of promoting products and services.

Most Facebook applications are focused on:

Which of the following is true about advertising and Facebook?

What are the hurdles encountered by Facebook in advertising? Compare Facebook's ad model with other successful online advertising firms.

Which of the following is a strategy adopted by Facebook?

CPM refers to:

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Exam 9: Facebook: Building a Business From the Social Graph

_____ is a term that refers to a closed network or single set of services controlled by one dominant firm.

A firm's stock price is supposed to reflect the _____ value of a firm's future earnings.

What are the various areas of concern for Facebook?

Which of the following factors prevents social networking sites from monetizing advertising effectively?

How has Facebook been able to gain a share in the photo-sharing and video-sharing markets at the expense of established firms?

When a firm issues an IPO, it is said to have:

Third-party Web sites can choose to accept a user's Facebook credentials to allow the user to access their content.

Several metrics suggest that Facebook may have been overvalued at IPO.

Which of the following is an area of concern for Facebook?

Facebook was one of the first social networking sites where users actually identified themselves using their real names.

Which of the following factors suggests that Facebook can offer Google greater competition in the search engine market?

Brand advertisers largely consider user-generated content as low-quality, brand-unsafe inventory for running advertisements. This can be attributed to:

Facebook's Beacon effort was a failure because it was "opt-out" instead of "opt-in."

Which of the following statements holds true for the term "free rider problem"?

_____ is considered to be the most persuasive and valuable method of promoting products and services.

Most Facebook applications are focused on:

Which of the following is true about advertising and Facebook?

What are the hurdles encountered by Facebook in advertising? Compare Facebook's ad model with other successful online advertising firms.

Which of the following is a strategy adopted by Facebook?

CPM refers to:

Setting the Stage: Technology and the Modern Enterprise

Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners From Losers

Zara: Fast Fashion From Savvy Systems

Netflix in Two Acts: the Making of an E-Commerce Giant and the Uncertain Future of Atoms to Bits

Moores Law and More: Fast, Cheap Computing, Disruptive Innovation, and What This Means for the Manager

Amazoncom: an Empire Stretching From Cardboard Box to Kindle to Cloud

Understanding Network Effects: Strategies for Competing in a Platform-Centric, Winner-Take-All World

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Software in Flux: Partly Cloudy and Sometimes Free

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Information Security: Barbarians at the Gateway and Just About Everywhere Else

Google in Three Parts: Search, Online Advertising, and Beyond

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