Which of the Following Is True Regarding a Marketing Audit

question 121

Multiple Choice

Which of the following is true regarding a marketing audit?

• A) It focuses primarily on a firm's macromarketing environment.
• B) It identifies the most-needed improvements and incorporates them into a corrective-action plan with short- and long-run steps.
• C) It is less effective at locating the real source of a problem than a functional audit.
• D) It analyzes only those marketing activities that have failed to produce adequate results.
• E) It relies solely on company managers for data and opinions.

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Definitions:

Flotation Costs

The costs associated with the process of raising new capital through the sale of stocks or bonds to investors, including advisory, legal, and promotional expenses.

Preferred Stock

Preferred stock is a type of stock that confers certain privileges or priorities to its holders, such as fixed dividends and priority over common stock in asset liquidation.

Par Value

The face value of a bond or stock, as stated by the issuing company; it is often a nominal figure that does not necessarily equate to the market value.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.