Which of the Following Is a Disadvantage Associated with Advertising

question 78

Multiple Choice

Which of the following is a disadvantage associated with advertising in magazines?

• A) Lack of permanence
• B) Limited reach and frequency
• C) Lack of consumer receptivity to ads
• D) Lack of prestige

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Definitions:

Effective-interest Method

A technique used in finance to calculate the actual interest rate on a bond or loan, taking into account the effect of compounding over the period.

Interest Expense

The cost incurred by an entity for borrowed funds; it is a non-operating expense shown on the income statement.

Straight-line Amortization

A method of reducing the carrying amount of an intangible asset over a fixed period of time in a systematic and rational manner.

Premium Amortization

The gradual expense or reduction of the premium paid above the par value of a debt security over its remaining term.