Which of the Following Is NOT a Valid Criticism of the Commission

question 13

Multiple Choice

Which of the following is NOT a valid criticism of the commission compensation system for an ad agency?

• A) There is an incentive to avoid non-commissionable media.
• B) Media costs do not relate directly to effort or expertise expended by agencies.
• C) In periods of media cost inflation, the agency is disproportionately rewarded.
• D) It is difficult to administer.

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Definitions:

Capital

Refers to assets or resources that businesses or individuals use to generate wealth through investment.

Saving Rates

The proportion of disposable income that individuals or an economy as a whole save rather than spend on consumption.

Income Growth

An increase in the amount of money earned by individuals or households over time.

Country

A distinct territorial body or political entity that is recognized as an independent nation.