Scenario 3-3 In Late 2004 a High-School Teacher Created the First Strictly

question 37

Multiple Choice

Scenario 3-3
In late 2004 a high-school teacher created the first strictly consumer produced advertisement, paying homage to Apple's iPod mini. It turned out to be a phenomenal hit. Since then advertisers have gotten on board and encouraged consumers to submit ads to them. In 2007 four consumer-created ads aired on the Superbowl. They included an ad for Firefox, an open-source web-browser that received 280 entries. The wining entry featured a girl who talks about surfing and then declares "My other browser is a surfboard." When General Motors requested ads for the new Chevy Tahoe was deluged with sharp anti-SUV ads from environmentally sensitive consumers. Nevertheless, letting consumers play the ad game often means that a small investment brings big buzz.
-(Scenario 3-3) In early 2004 consumers

• A) had yet to make an ad for a major advertiser
• B) were engaging in guerilla marketing
• C) had no idea how to choose an iPod
• D) hated SUVs

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Definitions:

Reporting Structure

A hierarchical arrangement of lines of authority, communications, rights and duties of an organization or entity that details how activities such as task allocation, coordination, and supervision are directed towards the achievement of organizational or entity aims.

Representational Faithfulness

The extent to which financial statements accurately reflect the economic phenomena they purport to represent.

Verifiability

A concept in accounting referring to the ability to ensure that different knowledgeable and independent observers can agree that a particular representation of financial information is faithfully depicted.

Reliable Information

Information that is accurately and precisely presented, free from significant error or bias, making it dependable for making financial decisions.