One Disadvantage of Using the Internet as an Advertising Medium

question 65

Multiple Choice

One disadvantage of using the Internet as an advertising medium is

• A)technical and administrative standards for the various online advertising formats are still evolving.
• B)as a relatively new medium, it has attracted limited use.
• C)pay-per-click search ads on Google are expensive and ineffective.
• D)it is difficult to translate messages that can be used in social media networks such as Facebook and Twitter.
• E)it often creates more traffic than a firm can actually handle.

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Definitions:

Dividend Yield

A metric illustrating the annual dividends paid by a firm as a proportion of its share price, typically represented as a percentage.

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable.

Preferred Stockholders

Investors who own shares that typically do not have voting rights but have a higher claim on assets and earnings than common stockholders, such as receiving dividends before them.

Liquidation Proceeds

The funds that are received as a result of liquidating, or selling off, a company's assets, typically occurring during bankruptcy or when a company closes.