Scenario 14-3 With Social Media Websites Such as Facebook and Twitter Garnering

question 62

Multiple Choice

Scenario 14-3
With social media websites such as Facebook and Twitter garnering so much attention from consumers and businesses alike, it is hard to believe that only 20 percent of small businesses are utilizing the sites to help promote their products and services. But that figure is precisely what was reported in a 2009 study conducted by MerchantCircle, a social network for small businesses. Once the survey results were released in 2010, experts were not surprised to see the percentage of social media users increase to nearly 50 percent; according to Darren Waddell, vice president of marketing at MerchantCircle, companies are turning to social media for advertising because it is relevant and inexpensive way to reach targeted consumers. Rather than pouring large sums of money into traditional marketing, business owners are starting to find more creative ways of promoting their brand. One of the more common practices for small business owners utilizing social media is including URLs on business cards-of all sites, Facebook (no surprise) was the most common site to make it onto business cards.(Jon Swartz, "More Small Businesses Use Facebook, Twitter to Promote." USA Today, July 21, 2010.)
-(Scenario 14-3) A new business owner is looking into various forms of advertising. Of all the different methods, he seems to be most excited about the idea of advertising through interactive media. Perhaps this is because

• A)consumers no longer pay attention to traditional forms of advertising.
• B)interactive media is better for small business owners.
• C)traditional forms of advertising do not provide enough information for consumers.
• D)the increase in wireless technology allows businesses to reach consumers at all hours of the day, regardless of location.

Recognize the relationship between variables including independent and dependent variables.

Understand the processes involved in controlling or measuring variables in a study.

Distinguish between the effects of real and placebo interventions in experimental designs.

Grasp the concept of random assignment and its importance in experimental research.

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Definitions:

AASB 110

The Australian Accounting Standards Board standard that provides the guidelines for the treatment of events after the reporting period, including their recognition and disclosure in financial statements.

Adjusting Event

An event occurring after the reporting period that provides additional evidence about conditions that existed at the end of the reporting period.

Non-Adjusting Event

An event that occurs after the reporting period that does not necessitate adjustments to the financial statements because it does not provide new information about conditions at the end of the reporting period.

Doubtful Debts Expense

An accounting concept referring to the provision a company makes to account for amounts it expects will not be collected from debtors.