Facebook's Charging for User Actions That Generate More Sales for Advertisers

question 129

Multiple Choice

Facebook's charging for user actions that generate more sales for advertisers demonstrates

• A) the influence of social network users in the marketplace.
• B) the monopoly of Facebook over the marketplace.
• C) the increasing effectiveness of advertising on social networking sites.
• D) the convergence of social networking sites with each other.
• E) the ethically questionable mode of Facebook charging advertisers for using their site.

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Definitions:

Average Inventory

An accounting measure used to estimate the value of inventory over a certain period by averaging the beginning and ending inventory levels.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Ending Inventory

The final value of goods available for sale at the end of an accounting period.

Net Income

The amount of earnings left over after all expenses, including taxes and costs, have been deducted from total revenue; essentially, the company's profit.