FINAL Flashcards
(608 cards)
Roughly one in every three people on the planet has a Facebook account. T OR F?
TRUE
Firms that grow quickly may seem less risky/more likely to succeed; therefore, fast growth may help
an entrepreneur extract better ownership terms from potential investors. T OR F?
TRUE
Facebook founder and CEO Mark Zuckerberg maintains a majority of voting rights in the public
company, virtually guaranteeing that his control of the firm continues, regardless of what investors
say. T OR F?
TRUE
Meta owns four of the Internet’s most widely used apps: Facebook, TikTok, WhatsApp, and Google
Voice. T OR F?
FALSE
When a firm has an IPO, it is said to have
gone public, selling shares on a public stock exchange for
the first time.
A stockbroker trades shares she does not own with an obligation of later repayment, and in the hope
that the price of traded shares will fall. She then repays share debt with shares purchased at a lower
price and pockets the spread between initial share price and repayment price. This attempt to profit
from a falling stock price is known as
SHORT SELLING
Studying Facebook provides a context for understanding which of the following:
network effects
platform partnerships
privacy
business value of social media
All of the above are true.
All of the above are true.
Investor groups that provide funding in exchange for an ownership stake in the firm are called
VENTURE CAPITALIST
Mark Zuckerberg, the founder of Facebook, ensured that he remained in control of the firm even after
it went public by
RETAINING A MAJORITY OF VOTING RIGHTS IN THE PUBLIC COMPANY.
Facebook’s key resources for competitive advantage are the sophisticated technological tools it
provides its users. T OR F?
FALSE
Facebook (and other apps the firm owns) collectively represent the most prominent photo-sharing
service on the Web, ahead of Picasa, Flickr, and Photobucket, even though all of these other efforts
started before Facebook. T OR F?
TRUE
Facebook can be wholly indexed by search engines, like Google and Bing, being able to index all of
Facebook content. T OR F?
TRUE
A significant portion of Facebook’s underlying technical infrastructure consists of open-source
software. T OR F?
TRUE
Facebook’s phenomenal growth implies that it requires minimal infrastructure investment. T OR F?
FALSE
Facebook was one of the first social networking sites where users actually identified themselves
using their real names. T OR F?
TRUE
Facebook purchased Oculus VR because, like Zuckerberg, the firm’s youthful founder had already
built a platform with massive customer base. T OR F?
FALSE
Facebook is especially appealing to organizations looking to share messages with fans since
anyone who has “liked” an organization on Facebook will see all of that organization’s posts in their
news feed. T OR F?
FALSE
Facebook will reduce the rank of posts that request reshares.
TRUE
Facebook’s acquisition of WhatsApp was a way for Zuckerberg’s firm to gain leadership in the
fast-growing mobile messaging market. T OR F?
TRUE
_____ is the biggest photo-sharing site on the Web, taking in around three billion photos each
month.
The deep web refers to
SITES THAT CANNOT BE INDEXED BY GOOGLE AND OTHER SEARCH
ENGINES.
Software that is free and whose code can be accessed and potentially modified by anyone is
referred to as
OPEN SOURCE SOFTWARE
Systems distributed throughout the Internet that help improve the delivery speeds of Web pages and
other media, typically by spreading access across multiple sites located closer to users are known
as
CONTENT DELIVERY NETWORKS
The term “social graph” refers to
THE GLOBAL MAPPING OF USERS AND ORGANIZATIONS AND
HOW THEY ARE RELATED.