Companies Typically Prefer Sweepstakes to Games or Contests Because

question 123

Multiple Choice

Companies typically prefer sweepstakes to games or contests because

• A)they can predict the number of winners in sweepstakes.
• B)organizing sweepstakes require less advertising.
• C)sweepstakes require product purchase to enter.
• D)courts and rulings have favored the use of sweepstakes.

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Definitions:

Absorption Costs

The total of all direct and indirect manufacturing costs assigned to a product.

Suboptimal Decisions

Decisions that do not yield the best possible outcome or that are less efficient compared to the optimal choice.

Buying Division

A segment within a company responsible for purchasing goods, materials, and services from external suppliers.

Transfer Prices

Prices used for the sale of goods or services between departments or subsidiaries within the same company, often set to comply with tax laws.