Which of the following business models fall under the category of native…

E-commerce classification sorts Internet business models into two families: native Internet business models, which exist purely because the internet exists and have no real-world business precedent — for example, a service built entirely around giving away information for free — and transplanted real-world business models, which take an already-existing offline commercial practice, such as a pay-to-continue-access arrangement, and simply move it online.

The library model is defined by that same free-information-access idea with no offline equivalent, which is why it is classified as a native Internet business model — Statement I. The subscription model, by contrast, charges a recurring fee for continued access, a practice that already existed for magazines, cable television, and clubs long before the internet; carrying it online only adapts an existing practice, so it is classified as a transplanted real-world model rather than a native one — Statement II.

• Only II would require the subscription model to have no offline precedent, which is not the case, while also dropping the library model out of the native category.

• Both I and II would require the subscription model to also qualify as native — meaning it would need no real-world precedent — but a pay-for-continued-access practice already existed offline.

• Neither I nor II would require the library model to also carry a real-world precedent, yet a free-information-access service with no offline equivalent is exactly what defines the native-Internet category.

Since only the library model meets the native-Internet criterion while the subscription model fits the transplanted category, the correct combination is Only I.