A Characteristic of Web 2

question 94

Multiple Choice

A characteristic of Web 2.0 is that the value of a Web site increases ________.

• A) over time
• B) in a linear fashion
• C) with users and use
• D) as the amount of capital invested in it increases

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Definitions:

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, highlighting the scalability of a company’s business model.

Variable Costs

Expenses that vary in relation to the amount of output or business operations.

Fixed Costs

Business expenses that remain constant, regardless of the level of production or sales activity.

Break-even Sales

The amount of revenue from sales that equals the total of variable and fixed costs, with no profit or loss.