Facebook's Charging for User Actions That Generate More Sales for Advertisers

question 152

Multiple Choice

Facebook's charging for user actions that generate more sales for advertisers demonstrates

• A)the influence of social network users in the marketplace.
• B)the increasing effectiveness of advertising on social networking sites.
• C)the convergence of social networking sites with each other.
• D)the monopoly of Facebook over the marketplace.

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Definitions:

Interest Rate

An interest rate is the percentage of principal charged by the lender for the use of its money, or the rate earned on deposited funds.

Futures Contracts

Legally binding arrangements to engage in the buying or selling of a designated financial asset or commodity at a price established in advance, to be executed at a designated future time.

Price Risk

This refers to the possibility of an investor experiencing losses due to changes in the market price of a security.

Hedge

Hedging involves making an investment to reduce the risk of adverse price movements in an asset, typically by taking an offsetting position in a related security.