E-Way Is an Electronics Company That Is Developing a New

question 12

Multiple Choice

E-Way is an electronics company that is developing a new cell phone that will be released in the market soon. Which of the following, if true, would strengthen the argument that the company should use social media to promote the new cellphone?

• A) E-Way's last two releases received a lot of criticism from consumers.
• B) One of E-Way's rival companies had used social media unsuccessfully to advertise its new product.
• C) The production team overshot the budget and the marketing team has low funds.
• D) The target consumers for the cellphone are not restricted to any demographic category.
• E) The company has a tightly integrated production and distribution mechanism.

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Definitions:

Operating Activities

Business activities directly related to the production, selling, and delivery of a company's products or services.

Financing Activities

Transactions related to raising capital and repaying debt; part of the cash flows in financial statements.

Investing Activities

Transactions and events that involve the purchase or sale of long-term assets and other investments not included in cash equivalents.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment activities, and financing activities.