IPA IP 2025 Question 21

A question IPA Japan published in 令和7年度 ITパスポート試験 公開問題 問21, translated into English. ITPEC is based on the same exams.

Which of the following is the most appropriate term that represents a business model in which basic functions and services are provided free of charge, and a profit is made by providing additional functions and services for a fee?

Explanation

Freemium — the basic product is free, and the profit comes from the paid additional functions and services.

The word joins “free” and “premium”. Giving the basic version away lowers the barrier to trying it, so the service spreads to many users; a fraction of them then pay for extras such as more storage, advanced functions, no advertisements or items in a game. The few paying users cover the cost of the many free ones. Cloud storage with a free basic capacity and paid upgrades is a typical example.

Answer (b)

Why not others:

  • •(a) — freeware is software distributed entirely free of charge; it is a kind of software, with no paid tier that the business earns from
  • •(c) — a free ride is enjoying a benefit that others pay for without paying for it yourself (the free-rider problem)
  • •(d) — freelance is a way of working: taking on jobs independently under contract instead of being employed by one company

Key rule: Freemium = free basic service + paid premium extras; freeware is simply free software, a free ride is benefiting without paying, and freelance is self-employed work.

Business Strategy Management · AI-written, may contain errors

This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.