Advertisements for Which of the Following Products Categories Would Merit

question 36

Multiple Choice

Advertisements for which of the following products categories would merit a continuous advertising timing pattern the most?

• A) air conditioners
• B) life insurance
• C) breakfast cereal
• D) automobiles
• E) holiday package tours

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Definitions:

Equity Multiplier

A financial ratio that measures a company's total assets financed by its shareholders' equity, used to evaluate financial leverage.

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, indicating how much profit a company makes with its total sales.

Gross Margin

The difference between revenue and cost of goods sold divided by revenue, expressed as a percentage.

Times Interest Earned

A ratio that measures a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes by the interest expense.