Refer to the Passage Below to Answer the Following Questions

question 131

Multiple Choice

Refer to the passage below to answer the following questions.
Polo Ralph Lauren manufactures and sells high-quality,expensive brands of clothing as well as accessories,cosmetics,and home products.The company maintains complete control over the brand image and all of the functions necessary to develop,execute,and deliver advertising.Polo appeals to consumers' lifestyle aspirations.Its products are of high quality and better than most competitors' offerings.The objective in the company's advertising is to convey this image and the fashion statement it makes.
-Because Polo Ralph Lauren wants to maintain close control over its image and advertising,which of the following statements is most likely TRUE?

• A)Polo Ralph Lauren will most likely use an outside advertising agency to develop and execute its advertising.
• B)Polo Ralph Lauren will most likely use an agency-of-record to develop and execute its advertising.
• C)Polo Ralph Lauren will most likely not use any outside resources,such as suppliers,to assist in developing and executing its advertising.
• D)Polo Ralph Lauren will get better media rates by not using an advertising agency to purchase advertising time and space.
• E)Polo Ralph Lauren will most likely use an in-house agency to develop and execute advertising.

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Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reversal of sales revenue.

Allowances Account

An account used to offset the gross accounts receivable balance for the estimated amount of uncollectible accounts.

Credit Sale

A transaction where the goods or services are provided to the customer with payment to be made at a later date.

Accounts Receivable

This refers to the amount of money customers are yet to pay a company for the products or services which have already been provided.