Advertising Is an Economically Productive Activity and NOT a Waste

question 57

Multiple Choice

Advertising is an economically productive activity and NOT a waste of resources because it:

• A)increases sales.
• B)can convey information about the product.
• C)can signal that firms are desperate for customers.
• D)can decrease the costs of production.

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Definitions:

Unsecured Creditors

Creditors who have extended credit without securing collateral, putting them at greater risk of loss if the debtor defaults.

Total Assets

The sum of all resources owned by an entity, including both tangible and intangible items, that have value and can be used to meet liabilities.

Liabilities With Priority

Obligations that have a preferential claim on the assets of a company in case of liquidation over other forms of debt.

Unsecured Creditors

Unsecured creditors are entities or individuals to whom money is owed but who have no collateral, security, or lien on any assets of the borrower.