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

question 61

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 this figure is precisely what was reported in a 2009 study conducted by MerchantCircle, a social network for small businesses. When 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 an inexpensive way to reach target consumers. Rather than pouring large sums of money into traditional marketing, business owners are finding more creative ways to promote 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) Two young women decided to open a comedy club,and they chose YouTube as their main outlet for advertising.They put together a five minute clip of an improvisation routine and posted it on the site.Soon they noticed that the total number of views for the video had skyrocketed to 25,000.They found that the video was being sent all over the country via email and Facebook messages.This short video is now a form of ___________.

• A) mobile marketing 
• B) online retailing 
• C) interactive advertising 
• D) viral marketing

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Definitions:

Charitable Contributions

Contributions given to eligible entities that the donor might deduct from their taxes.

Adjusted Gross Income

The total gross income minus specific deductions, a crucial figure in the determination of a taxpayer’s liabilities and eligibility for various tax credits and deductions.

Carry Forward

A tax provision allowing a taxpayer to use any remaining tax credits or deductions in the following fiscal period.

Cash Contributions

Donations or gifts given in the form of physical money, such as banknotes or coins, to charitable organizations or entities.