In the Early 2000s,the Mattel Company Was Faced with a Major

question 61

Multiple Choice

In the early 2000s,the Mattel Company was faced with a major problem with some of its toys due to faulty magnets and high levels of lead-based paint.When the company realized it was facing a serious problem,it immediately involved federal agencies on product safety,recalled millions of toys from the shelves,and launched a massive campaign to inform consumers about the recall.In addition,the company set up a crisis link on its webpage and posted updates regularly.Mattel's actions can be classified as

• A)consumer fraud.
• B)poor public relations.
• C)negative publicity.
• D)crisis management.
• E)direct marketing.

---

Definitions:

Accounts

Records within financial accounting that are used to keep track of increases or decreases in specific financial components, like assets, liabilities, equity, revenue, and expenses.

Dividends Declared

Dividends Declared are profits that a company's board of directors has decided to distribute to shareholders, but which have not yet been paid out.

Increase

An uptick in size, number, value, or strength.

Posting

The process of transferring journal entry amounts to respective accounts in the ledger.