​You Asked Your Stockbroker to Consider Buying Some Shares of Facebook

question 15

Multiple Choice

​You asked your stockbroker to consider buying some shares of Facebook, Inc. for your investment account. But, first you want to review the summary points in the SWOT analysis the stockbroker's firm did on the company. The following summary points were listed in the SWOT analysis: 1. Facebook has a reputation as a market leader and it is quickly establishing a formidable brand loyalty amongst its users."2. Because of its position in the industry, it risks incurring high costs associated with creating and marketing new products that are designed to perpetuate its industry leadership.These summary points suggest"

• A)that Facebook's products are Cash Cows.
• B)that Facebook has a first-mover advantage.
• C)that Facebook's products are Question Marks.
• D)that Facebook has a superior marketing strategy versus its peers.
• E)that Facebook has a late-mover advantage.

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Definitions:

Serious Harm

A significant or profound negative impact on an individual's physical, emotional, or psychological well-being.

Authority

A right or power assigned to an individual or organization to make decisions and enforce rules.

Confirmation Bias

Confirmation bias describes the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses, while giving disproportionately less consideration to alternative possibilities.

Availability Heuristic

This is a mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.