Topics: Social network service, Profit, Revenue Pages: 2 (402 words) Published: May 20, 2013
1. What is the LinkedIn website, what service(s) does it provide? (3 marks) It’s a serious business social networking website. It provide resume-posting by more than 100 million professionals and corporate types.

2. What was LinkedIn’s Net profit Margin in 2010? (1 mark) $243-million revenue, profit: $15.4-million

3. Why are their concerns about the future potential growth in the number of LinkedIn user? (3) -The company acknowledges that the number of its registered members is higher than the number of actual members because “some members have multiple registrations, other members have died or become incapacitated, and others may have registered under fictitious names” -LinkedIn stated that “we do not have a reliable system to accurately identify the number of actual members” - more of the users use Facebook more often than LinkedIn, if they don’t raise the frequency to increase the times to visit their site, then it might become a problem in terms of profits and stock price.

4. What is the major driver of their expected -220 times profit-per-share price of $32-$35?(2) -from 2009 to 2010, revenue increased by 102 % and income increased by 487 %. -The audience that already spans much of corporate North America.

5. Who generate most of the site’s revenue? Why do they use the LinkedIn website?(3) -LinkedIn brings in most of its money from corporations that use LinkedIn as a recruiting or marketing tool. -which companies can use the user profiles to identify both active and passive job candidate, are cheaper than traditional recruiting firms.

6. Approximately how much capital is LinkedIn trying to raise? What will it be used for? (3) -IPO valuation of $3-billion
-“invest heavily” in product development
-“aggressively expand” its field sales staff

7. Would you invest in LinkedIn shares? Why or why not? (3) -probably no, although It’s a unique concept compare to other s ocial net working website, however, all these facts...
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