One of the World's Largest Publishers Was Totally Unprepared for Recent

question 182

Multiple Choice

One of the world's largest publishers was totally unprepared for recent increases in the demand for digital books.During 2011,the sale of e-books exceeded the sales of traditional printed paperback books for the first time.If the publisher had __________,it would have been more prepared for this shift in demand.

• A)optimized its distribution by eliminating local and chain store bookstores (like Borders)that failed to meet their sales quotas
• B)noticed the change in the demographics of book readers in general
• C)noticed the behavioral changes in movie goers,who now prefer to view 3D movies in IMAX theaters
• D)shifted funds from product development to advertising
• E)tracked,as part of its ongoing environmental scanning activities,the sales of e-books sold by other publishers as well as e-book readers sold by Amazon.com (Kindle)and Barnes and Noble (Nook)

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Definitions:

Bankers' Acceptances

Bankers' acceptances are short-term financial instruments issued by a company that banks guarantee; they are commonly used in international trade.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Secondary Markets

Markets where securities are bought and sold after their initial issuance, allowing for liquidity and valuation of financial instruments.

Working Capital Financing Policy

Strategies a company uses to manage and finance its current assets and current liabilities to ensure it has sufficient liquidity to run its operations.