While Social Media Has Been an Effective Marketing Tool in Promoting

question 27

True/False

While social media has been an effective marketing tool in promoting organisations and their products and services, it also comes with high risk due to the lack of control an organisation has in relation to the speed with which it can damage an organisation's brand, image and reputation.

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Definitions:

Operating Cycle

The period of time between the acquisition of goods for production and the cash received from their sale.

Cash Cycle

The period between the outlay of cash for the purchase of inventory and the receipt of cash from accounts receivable, representing the time it takes for a company to turn its investments in inventory back into cash.

Receivables Factoring

The process of selling a business's accounts receivable to a third party at a discount to quickly generate cash.

Bad Debts

Financial amounts owed to a company that are unlikely to be paid by debtors, often recognized as an expense on the company's income statement.