Inchol Chung Is the Owner of a Popular Bar in a College

question 53

Multiple Choice

Inchol Chung is the owner of a popular bar in a college town and typically advertises in the college newspaper about upcoming drink specials or special events. Inchol was an early adopter of e-marketing and worked with a college intern to create a webpage for the business. At the time, Inchol believed he could simply modify the newspaper advertisements and Yellow Page listings and publish those to the webpage to attract customers and inform them of events. However, his early efforts with e-marketing were not successful. Which of the following could explain why his website failed?

• A) He treated digital marketing like a traditional marketing channel.
• B) He didn't spend enough money on digital marketing.
• C) He failed to utilize social networks such as Facebook.
• D) He didn't hire an advertising agency.

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Definitions:

Valuation

A systematic process to determine the price at which a security should sell in financial markets.

Designated Market Maker

A designated market maker is a market participant responsible for maintaining liquidity in a financial market by buying and selling securities.

Securities

Assets indicating equity in a publicly-traded company, a bond signifying indebtedness to a company or government, or options granting ownership rights.

Collateralized Debt Obligations

Collateralized debt obligations (CDOs) are complex financial instruments that pool together cash flow-generating assets and repackages this asset pool into discrete tranches that can be sold to investors.