Which of the Following Statements Is True About Social Media

question 39

Multiple Choice

Which of the following statements is true about social media?

• A) It is considered to be the most expensive means of getting information out.
• B) It is currently the least preferred medium of marketing for companies.
• C) It always leaves a negative impact on the company's image since employees discuss their job, talk about issues, and vent their frustrations.
• D) It provides a wealth of opportunity for companies that want to share their message about products and services with the world.

---

Definitions:

Net Profit Margin

A profitability metric indicating the percentage of revenue left as net income after all expenses, taxes, and costs have been subtracted.

Return On Assets

Return on assets (ROA) is a profitability ratio that measures how efficiently a company can manage its assets to produce profits during a period, calculated by dividing net income by total assets.

Financial Leverage

The use of borrowed funds (debt) to amplify returns from an investment or project.

Fixed Asset Turnover Ratio

A performance metric that evaluates how efficiently a firm uses its fixed assets to generate sales.