Stroome, the Focus on the Opening Feature for Chapter 6

question 75

Multiple Choice

Stroome, the focus on the opening feature for Chapter 6, has developed a new Web-based service for editing and remixing video. Stroome's initial business model is based on making money in the following two ways:

• A) subscription fees and licensing its software to film producers
• B) a "freemium" pricing model and white labeling its site
• C) online advertising and affiliate fees
• D) white labeling its site and subscription fees
• E) Google AdSense and affiliate fees

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Definitions:

Notes Payable

Short-term or long-term liabilities representing amounts owed by a business, documented by a formal promissory note.

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods and services purchased on credit.

Note Payable

A written promise to pay a certain amount of money at a future date, often including interest.

Borrower

An individual or entity that takes out a loan from another entity or individual under the agreement to repay the amount borrowed, typically with interest.