Compared to In-House Hosting, Cloud-Based Hosting ________

question 78

Multiple Choice

Compared to in-house hosting, cloud-based hosting ________.

• A) provides better vision of disaster preparedness capabilities
• B) minimizes the risk of investing in technology that will soon become obsolete
• C) provides greater control over the location of data
• D) requires a significant amount of capital

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Definitions:

External Benefit

Positive effects of a transaction or activity on third parties not directly involved in the transaction, which are not reflected in the market price.

Negative Externality

A negative externality is a cost imposed on a third party not involved in the production or consumption of a good or service, such as pollution.

Positive Externality

A beneficial effect experienced by a third party who did not choose to incur that benefit, often resulting from an individual's or firm's actions.

Corrective Tax

A tax designed to internalize externalities, effectively correcting market outcomes that might otherwise result in social inefficiency.