The What Went Wrong? Feature in Chapter 5 Focused on Digg

question 59

Multiple Choice

The What Went Wrong? feature in Chapter 5 focused on Digg, a Web site that was once one of the hottest sites on the Internet but eventually failed. According to the feature, through a series of missteps Digg ________.

• A) failed to conduct sufficient competitor analysis
• B) succumb to the bargaining power of suppliers
• C) lost its way and its place in its industry
• D) was unable to erect sufficient barriers to entry
• E) succumb to the bargaining power of buyers

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, generally reflected in the cash flow statement as part of a company's financial activities.

Net Cash

The amount of cash available after accounting for cash inflows and outflows in a given period.

Financing Activities

Involves activities that result in changes in the size and composition of the equity capital and borrowings of the entity.

Net Cash

The final amount of cash available after accounting for all cash inflows and outflows, crucial for assessing financial health.