Which of the Following Is True About the Use of Social

question 69

Multiple Choice

Which of the following is true about the use of social media in promotion?

• A) It seeks to convert an existing need into a want or to stimulate interest in a new product.
• B) It is designed to stimulate a purchase or an action.
• C) It becomes the main promotion goal when the product enters the growth stage of its life cycle.
• D) It aims to form relationships with customers and potential customers.

---

Definitions:

Shareholders' Equity

The residual interest in the assets of an entity after deducting liabilities, reflecting ownership value.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Return on Common

A measure of the profitability relative to shareholders' equity, specifically for common stockholders.

Policy Decisions

Major choices or judgments made by a business, government, or other organization that establish principles or courses of action.