List the major risks for businesses that indulge in commercial applications of social networking. Discuss any one of them briefly
What will be an ideal response?
Some of the major risks for businesses that indulge in commercial applications of social networking are:
• Junk and crackpot contributions
• Inappropriate content
• Unfavorable reviews
• Mutinous movements
When a business participates in a social network or opens its site to UGC, it is prone to the risk of unfavorable reviews. Research indicates that customers are sophisticated enough to know that few, if any, products are perfect. Most customers want to know the disadvantages of a product before purchasing it so they can determine if those disadvantages are important for their application. However, if every review is bad, then the company is using social media to publish its problems. In this case, suitable action must be taken.
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Performance Bicycle Company makes steel and titanium handlebars for bicycles. It requires approximately one hour of labor to make one handlebar of either type. During the most recent accounting period, Barr Company made 7,000 steel bars and 3,000 titanium bars. Setup costs amounted to $84,000. One batch of each type of bar was run each month. If a single companywide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be:
A. $49,000. B. $8,400. C. $84,000. D. $58,800.
Mutual fund investors delegate all of the following decisions to the fund's managers EXCEPT
A) which companies and industries to invest in. B) when to buy and sell individual stocks. C) how many securities to hold in the portfolio. D) how to allocate investments among different classes of assets such as stocks, bonds, cash and real estate.
Leo received $7,500 today and will receive another $5,000 two years from today. If he invests these funds immediately at 11.5 percent, what will his investments be worth five years from now?
A) $18,758.04 B) $18,806.39 C) $19,856.13 D) $20,314.00 E) $19,904.36
What is the value in year 10 of a $1,000 cash flow made in year 5 if interest rates are 9 percent in years 6 and 7, and increase to 13 percent in the remaining years?
A. $1,799.42 B. $1,691.47 C. $1,538.62 D. $1,714.31