Which of the Following Statements About the Cable Television Industry

question 68

Multiple Choice

Which of the following statements about the cable television industry is true?

• A)Experts predict cable's popularity as an advertising medium will continue to decline.
• B)The cable industry is unaffected by the direct broadcast satellite (DBS)services because of FCC regulations forbidding DBS services to carry local television stations.
• C)The cable industry is highly regulated by the federal government.
• D)Many cable companies have become multinational companies offering programming in many foreign countries.
• E)Direct broadcast satellite (DBS)services offer fewer channel choices than most cable television systems.

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Definitions:

Return on Assets

A profitability ratio that indicates how efficiently a company is using its assets to generate earnings.

Return on Sales

A financial ratio that calculates how efficiently a company is generating profits from its revenue, typically expressed as a percentage of sales revenue that turns into net income.

Ending Cash Balance

The amount of cash on hand at the end of a financial period.

Statement of Cash Flows

A financial document that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.