Which of the Following Actions of a Firm Suggests That

question 53

Multiple Choice

Which of the following actions of a firm suggests that it uses the freemium approach for applying freeconomics?

• A) It provides free services to customers and gets paid for it by third parties.
• B) It reduces the sale price of one item in order to sell something else of value.
• C) It distributes products to customers without an appreciable cost to anyone.
• D) It offers basic services for free but charges a premium for special features.
• E) It allows people to participate and collaborate to create something of value.

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Definitions:

Interim Income Statements

Financial statements reporting a corporation's financial performance for a period shorter than a fiscal year, often quarterly.

Expenses

Costs incurred in the process of earning revenue, including operational costs, salaries, and utilities, among others.

PCAOB

Stands for the Public Company Accounting Oversight Board, which is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.

Audit Report

An official opinion issued by an auditor based on an examination of a company's financial statements, expressing the auditor's view on whether the financial statements give a true and fair view of the company's financial performance and position.