Question at position 16 The Cambridge Analytica scandal's impact on Facebook demonstrates what principle about digital reputation?Privacy breaches can cause significant reputation damageOnly large companies face reputation risksSocial media platforms are immune to reputation lossReputation damage is always temporary

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The question asks about what principle the Cambridge Analytica scandal's impact on Facebook demonstrates regarding digital reputation.
Option 1: 'Privacy breaches can cause significant reputation damage' - This is the core takeaway. When a platform is found to mishandle user data or engage in questionable data practices, public trust can suffer substantially, leading to lasting reputational harm and user backlash. The scandal highlighted how privacy issues can erode confidence and affect user engagement and brand value.
Option 2: 'Only large companies face reputation risks' - This is inaccurate. Reputation risk affects organizations of all sizes, and the Cambridge Analytica case shows that a technology platform serving millions can experience major reputational damage due to privacy concerns, not that only large firms face such risks.
Option 3: 'Social media platforms are immune to reputation loss' - This is incorrect. The event demonstrates the opposite: social media platforms are vulnerable to reputational harm when privacy or ethical concerns surface, and such damage can be substantial.
Option 4: 'Reputation damage is always temporary' - This statement is not supported by the example. The scandal led to persistent scrutiny, regulatory attention, and ongoing public concern, illustrating that reputation damage can be enduring rather than temporary.

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