Chapter 11 - Facebook

Question 1

The first time a firm makes shares available via a public stock exchange, also known as “going public”.

Answer 1

IPO (initial public stock offering)

Question 2

The cost a consumer incurs when moving from one product to another. It can involve actual money spent (e.g., buying a new product) as well as investments in time, any data loss, and so forth.

Answer 2

Switching costs

Question 3

Systems distributed throughout the Internet (or other network) that help to improve the delivery (and hence loading) speeds of Web pages and other media, typically by spreading access across multiple sites located closer to users. Akamai is the largest CDN, helping firms like CNN and MTV quickly deliver photos, video, and other media worldwide.

Answer 3

content delivery networks (CDN)

Question 4

Concern that an advertisement will run near offensive material, embarrassing an advertiser and/or degrading their products or brands.

Answer 4

content adjacency

Question 5

Software that is free and whose code can be accessed and potentially modified by anyone.

Answer 5

open source software (OSS)

Question 6

Also known as Metcalfe’s Law, or network externalities. When the value of a product or service increases as its number of users expands.

Answer 6

network effect

Question 7

Adapting products and services for different languages and regional differences.

Answer 7

localization

Question 8

Internet content that can’t be indexed by Google and other search engines.

Answer 8

dark Web

Question 9

A closed network or single set of services controlled by one dominant firm. A closed network or single set of services controlled by one dominant firm.

Answer 9

colossal walled garden

Question 10

An attempt to profit from a falling stock price. Short sellers sell shares they don’t own with an obligation of later repayment. They do so in the hope that the price of sold shares will fall. They then repay share debt with shares purchased at a lower price and pocket the difference (spread) between initial share price and repayment price

Answer 10

short

Question 11

The global mapping of users and organizations and how they are connected.

Answer 11

social graph

Question 12

The act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined generally large group of people in the form of an open call.

Answer 12

crowdsourcing

Question 13

When others take advantage of a user or service without providing any sort of reciprocal benefit.

Answer 13

free rider problem

Question 14

Programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data. For example, Amazon provides application programming interfaces (APIs) to let developers write their own applications and Web sites that can send the firm orders.

Answer 14

application programming interfaces

Question 15

A collection of resources available for access over the Internet.

Answer 15

cloud

Question 16

IPO

Answer 16

Initial public stock offering, the first time a firm makes shares available via a public stock exchange, also known as ‘going public.’

Question 17

switching costs

Answer 17

The cost a consumer incurs when moving from one product to another. It can involve actual money spent (e.g., buying a new product) as well as investments in time, any data loss, and so forth.

Question 18

content delivery networks (CDN)

Answer 18

Systems distributed throughout the Internet (or other network) that help to improve the delivery (and hence loading) speeds of Web pages and other media, typically by spreading access across multiple sites located closer to users. Akamai is the largest CDN, helping firms like CNN and MTV quickly deliver photos, video, and other media worldwide.

Question 19

content adjacency

Answer 19

Concern that an advertisement will run near offensive material, embarrassing an advertiser and/or degrading their products or brands.

Question 20

open source software (OSS)

Answer 20

Software that is free and whose code can be accessed and potentially modified by anyone.

Question 21

network effect

Answer 21

Also known as Metcalfe’s Law, or network externalities. When the value of a product or service increases as its number of users expands.

Question 22

localization

Answer 22

Adapting products and services for different languages and regional differences.

Question 23

dark Web

Answer 23

Internet content that can’t be indexed by Google and other search engines.

Question 24

colossal walled garden

Answer 24

A closed network or single set of services controlled by one dominant firm. A closed network or single set of services controlled by one dominant firm.

Question 25

short

Answer 25

Short selling is an attempt to profit from a falling stock price. Short sellers sell shares they don’t own with an obligation of later repayment. They do so in the hope that the price of sold shares will fall. They then repay share debt with shares purchased at a lower price and pocket the difference (spread) between initial share price and repayment price.

Question 26

social graph

Answer 26

The global mapping of users and organizations and how they are connected.

Question 27

crowdsourcing

Answer 27

The act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined generally large group of people in the form of an open call.

Question 28

free rider problem

Answer 28

When others take advantage of a user or service without providing any sort of reciprocal benefit.

Question 29

application programming interfaces

Answer 29

Programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data. For example, Amazon provides application programming interfaces (APIs) to let developers write their own applications and Web sites that can send the firm orders.

Question 30

cloud

Answer 30

A collection of resources available for access over the Internet.