DVD Heaven Sells New and Used DVDs, Particularly to University

question 161

Multiple Choice

DVD Heaven sells new and used DVDs, particularly to university and college students in large Canadian cities. It plans to expand its business online, hoping to increase sales by offering a more convenient means of ordering for busy college students. The vice-president of marketing suggests opening a Facebook page for DVD Heaven, but the president argues that social media sites would not help its business. Which of the following statements, if true, would support the argument made by the president for not using social media sites as part of DVD Heaven's advertising strategy?

• A) Social media is changing so rapidly that what is relevant today may easily be outdated tomorrow.
• B) Search ads combined with social media campaigns lead to higher results for products than just using general search ads.
• C) Brands entered in social networks as topics or members of the community can build customer relations.
• D) Social media sites can increase buzz and word of mouth simply by conversation about a product or business.
• E) Social media sites provide real-time discussions that can include the latest DVDs available or recommendations for DVD purchases.

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Definitions:

Stock Price

Stock price is the current market price of a share of stock, reflecting the value the market places on a company.

Book Value

The net value of a company's assets found on its balance sheet, and calculated as total assets minus intangible assets and liabilities.

Equity Multiplier

A financial ratio indicating the portion of a company's assets that are financed by stockholder's equity.

Total Debt

The sum of all short-term and long-term liabilities that a company owes, indicating the total amount of borrowed funds.