Which of the Following Is a Characteristic of the Affordable

question 8

Multiple Choice

Which of the following is a characteristic of the affordable method of establishing a marketing communications budget?

• A) fixed annual budget
• B) suitable for long-range planning
• C) priority given to role of promotion as an investment
• D) calculated to reflect what the company can spare for marketing communications
• E) based on the immediate impact of promotion on sales volume

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Definitions:

Growth

An increase in the value of an asset or company, often measured by revenue, profits, or size expansion.

Normal Growth

In stock pricing models, growth at a rate less than the rate of return. Growth rates in excess of the rate of return are super normal.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically with fixed dividends.

Annual Return

The percentage change in the value of an investment over a one-year period, including dividends, interest, and capital gains.