Google Offers Its Search Capabilities for Free and Earns Revenue

question 85

Multiple Choice

Google offers its search capabilities for free and earns revenue from advertising.New Web search engines appear frequently on the Internet,but few are successful.Considering Porter's five forces model,how would you rate the threat of new entrants for Google?

• A) low, because new entrants usually fail
• B) low, because new entrants are frequent
• C) high, because new entrants are frequent
• D) high, because new entrants usually fail

---

Definitions:

Journal Entries

Records of financial transactions in the accounting system, marked by debits and credits to maintain the balance of accounts.

Stock Securities

Equities or shares in corporations, representing a fraction of ownership in the company; these can provide dividends and potential appreciation in value to its holders.

Long-Term Investment

Investments in securities or other assets that are intended to be held for several years or more.

Cash Dividends

Payments made by a corporation to its shareholders as a distribution of profits, typically in cash form, reflecting the company's profitability.